Several psychologists and experts based in India recently explained that digital payment instruments are more likely to cause addiction among consumers than cash. Indeed, consumers paying with paper money are generally more responsible as they can quickly monitor the thickness of their wallets. Moreover, it has been demonstrated that cash users develop a certain attachment to the money they feel in their hands – an unlikely reaction to numbers on a screen.
It was found that people aged between 25 and 50 years old are the most likely to become compulsive online shoppers. Indeed, experiences demonstrate that those who discovered the digital world late in life are more likely to develop an addiction because of the novelty effect and the ease of use that these platforms offer. Consumers living in small towns are also more likely to succumb to the convenience of e-payments.
Psychologists estimate that the current push toward cashless instruments might affect the behavioural trends and customers’ spending habits – at their own peril. The recent demonetisation of Rs 1,000 and 500 banknotes has already pushed many Indians to turn to e-wallets and digital instruments, but this trend might just be temporary. In fact, cash withdrawals still represent 90% of debit card transactions.
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