Customers typically spend 25% to 30% more when using a digital payment methods compared to cash.
Research from the University of Surrey suggests that digital payments can indeed lead to less mindful spending.
The study found that **digital payments create a psychological disconnection from money**, which can result in more impulsive purchases.
As one participant noted, “Digital money doesn’t feel like spending your own money; there is no concept of money, but cash is different; it always feels like your money is decreasing when you use it.”
Key Observations on Spending Behaviors
While the exact percentage of increased spending is not confirmed in these search results, the research indicates that digital payments can indeed encourage less restrained spending compared to cash transactions.
The visceral nature of handling physical cash seems to create a psychological barrier that digital payments do not replicate.
The trend towards digital payments continues to grow, with digital wallet usage increasing 32% in 2023 and 2024, particularly among younger generations like Gen Z and Millennials.
This shift suggests that understanding the psychological impacts of payment methods is becoming increasingly important for consumers and businesses alike.
Citations:
[1] https://www.linkedin.com/pulse/cash-vs-digital-payments-weighing-costs-benefits-nepali-prem-basnet-ugjhc
[2] https://fedpaymentsimprovement.org/wp-content/uploads/042624-consumer-brief.pdf
[3] https://www.bajajfinserv.in/digital-payment-vs-cash-payment
[4] https://www.frbservices.org/news/research/2023-findings-from-the-diary-of-consumer-payment-choice
[5] https://www.surrey.ac.uk/news/cash-king-surprising-truth-about-spending-habits-cashless-world
[6] https://www.businessnewsdaily.com/15255-cash-free-society.html
[8] https://thepaymentsassociation.org/article/consumer-behaviour-trends-revealed/
No chargebacks: Unlike credit card transactions, bank-to-bank transfers eliminate the risk of costly chargebacks.
Pay-By-Bank gives accountants and business owners the ability to view transaction history in real-time, track, and manage payments by the day, week, monthly or by year.
While Open Banking Pay-By-Bank offers a compliant payment solution, dispensaries must still navigate the complex regulatory landscape:
While Open Banking Pay-By-Bank offers a compliant payment solution, dispensaries must still navigate the complex regulatory landscape: