Cashless Payments Are Making People More Prone To Overspend, Finds Study
NDTV
The study found that the convenience of spending has made people more prone to spending on luxurious items that are mostly unnecessary.
With digital payments becoming more and more common in developing and developed countries, the spending behaviour of people has significantly changed. A study conducted by a team from the University of Adelaide and the University of Melbourne in Australia has concluded that cashless payments are driving people to spend more than before. The researchers conducted the study by doing a meta-analysis of 71 previous papers and by observing the spending habits of people across 17 countries. They found that the convenience of spending has made people more prone to spending on luxurious items that are mostly unnecessary.
"To prevent spending more than planned, we recommend consumers carry cash instead of cards whenever they can, as it acts as a self-control method," said marketing researcher Lachlan Schomburgk from the University of Adelaide, as per Science Alert.
"When using cash, people physically count and hand over notes and coins, making the act of spending more salient. If nothing is physically handed over, it's easy to lose track of how much is spent," he added.
