The willingness to pay has traditionally been higher with debit cards than cash, but consumers have become more used to non-cash payments, says a researcher.
cards interface. Give it a try.LUND, Sweden: The act of handing over hard-earned cash has long been associated with pain. And historically, research has also found that consumers tended to spend less using cash rather than a payment card.
The “pain of payment effect” - the psychological discomfort of parting with money in the moment of paying - when associated with cash has been attributed to its physical and tangible characteristics in comparison to credit card payment. Mobile payment has also been found to affect spending in a similar way to using credit or debit cards. That is, spending tended to be higher when using mobile payments than cash.Commentary: Children may develop a careless attitude towards money, as more transactions go cashlessHowever, later studies have found this effect between cards or mobile payment and cash becoming weaker with time, suggesting that this may be because consumers have become more used to non-cash payment methods.
My own research from Sweden backs up the findings that the pain of paying with cash compared to digital methods has reversed over the years. Cash use is falling in many countries, and Sweden is a particularly cashless society, with fewer and fewer stores now accepting notes and coins. Comments like these indicate that for cash to be perceived as real money to a younger demographic, it may need to be transferred into a cashless payment method. This suggests that pain of payment affects the generations differently, depending on habits and technology.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Martial law debacle revives painful memories in South KoreaMany recall the trauma of the early 1980s, when South Korea was periodically placed under harsh laws.
Read more »
Commentary: Praising people for good work can be more valuable than moneyRecognising good work is cheap, effective and not done nearly as much as it should be, says the Financial Times' Pilita Clark.
Read more »
Commentary: Ukraine is open to major compromise – is the end of Russia’s war in sight?After nearly three years of war, actual peace talks and a ceasefire are more likely than ever, but this could turn out to be only a temporary relief for Ukraine, says international security expert Stefan Wolff.
Read more »
Commentary: The ‘Five Eyes’ spy alliance should let Japan joinIt’s time for a strong Asian partner in the Western “Five Eyes” intelligence group, says Karishma Vaswani for Bloomberg Opinion.
Read more »
Commentary: Malaysian PM Anwar’s unity government faces its biggest tests next yearMalaysian Prime Minister Anwar Ibrahim will look back at 2024 as validation of the tough choices he’s had to make since the November 2022 general election, says political analyst James Chai.
Read more »
Commentary: Israel wasted no time in taking advantage of Assad’s fall in SyriaIsrael’s air strikes and ground incursion in Syria were carried out with little risk to itself, says Carl Skadian from the NUS Middle East Institute.
Read more »