People are twice as likely to spend more money when paying with card versus cash according to a US study published by Forbes.
The survey of 2,000 American adults found 70 percent predominantly make payments using cards versus 22 percent preferring cash, seven percent digital wallets and one percent buy now pay later. Boomers (born 1946–1964) are also less likely to use cash than younger generations.
58 percent of people said card payments were ‘their prime facilitator of higher spending’, which Forbes attributed to the less tangible nature of paying with cards, ‘which seems to loosen the psychological purse strings.’ It added that ‘the physical act of handing over money may heighten awareness of expenditure.’ 21 percent admitted to ‘often overspending’ when using a card to pay instead of cash.
