LAUSR

Abstract While Apple Pay as a payment method has become increasingly popular in the hospitality industry, there is scant research examining the psychological processes associated with its use. To address this gap, the present research investigates the interplay between payment method (Apple Pay vs. card payment) and service encounter outcome (success vs. failure) on consumer evaluations. The findings suggest that Apple Pay acts as a double-edged sword that affects satisfaction through distinct psychological processes depending on the service encounter outcome. In contrast to card payment, Apple Pay boosts satisfaction through an elevated sense of coolness in a successful encounter, whereas it diminishes satisfaction through a heightened sense of embarrassment in a failed encounter. Practical implications for managing technology-infused service encounters are discussed.