Yes. We Spend More With Cashless Payments

16 June 2024 – When using cashless methods of payment, people tend to spend more.

New research found support for the existence of a positive “cashless effect”, which is when consumers spend more when using cashless payment methods in comparison to cash.

The study suggests the cashless effect leads people to spend more when purchasing products that are typically used to signal status, such as jewelry. However, the effect was not observed when donating or tipping.

Researchers, as reported in EurekAlert, say consumers should be mindful of the payment method they use to pay for goods or services, as this could help them spend less – especially important in the current cost-of-living crisis.