The site's average transaction value, determined based on its regulatory filings by dividing reported revenue by number of transactions, was about $40 in 2009.
This holds that the velocity (V) multiplied by the number of notes in circulation (M) should be equivalent to the average transaction value (P) multiplied by the number of transactions involving notes (T) – or MV = PT.
They then weighted the numbers to get the probability a banknote appears in a transaction, derived from the average transaction value of £9.47, to get an estimation of the number of times each note changes hands.
A big-name refusenik is John Lewis, which says it has no plans to go contactless at any of its 46 locations because the average transaction value at its department stores is above £30.
She added that although next week's austerity measures, to be detailed by the Chancellor on Wednesday, were a concern, "relative to other retailers our average transaction value is pretty low at around £5, so we are less affected during a downturn or tougher economic times".
Customer traffic readings on a monthly basis have been solid, along with healthy gains in average transaction value.
IPayment has some 56,000 merchant locations, which average less than $250,000 a year in charge volume with an average transaction value of $75.
"If your average transaction value is 75 cents a month, Visa doesn't want to talk to you," says Russell Jones, general manager of Compaq's MilliCent.
Furthermore, an API for picture libraries will allow them to sell their own images into Tweak – allowing them to take the average transaction value and up it.
"It was essential to have a physical and local presence to ensure the satisfaction of our customers, whose average transaction value is €26,000 for 10 days.
