Cash versus contactless mobile payment: The effect of payment modes on donation behaviors

Abstract We examined the effect of different payment methods on charitable donations through a lab experiment. Participants participated in a real donation scenario where they could choose between cash or contactless mobile payments. The results indicate that contactless mobile payment led to higher donation amounts compared to cash. We suggest that the greater familiarity with the payment mode plays a significant role in increasing donation, particularly as the widespread use of contactless payments during pandemic lockdowns likely made people more comfortable with mobile payments, resulting in more generous donations.