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Paying with cash makes us healthier

Categories : Cash is efficient
June 1, 2016
Tags : Budget control, Consumers, Ease of use, Electronic, Retailers, User-friendly
By removing the 'pain to pay', electronic payments make it harder to resist the little snacks and unncessary purchases and treats.
Guillaume Lepecq

Is there a relationship between how we pay and what we buy?

Electronic transaction providers have beeen striving to make payments frictionless. Credit cards enable payments when the funds are not available. Contactless payments no longer require a PIN code. And mobile payments don’t require a card at all.

But by removing the ‘pain to pay’ it also becomes harder to resist the little snacks and unncessary purchases and treats. Research[1] conducted in 2010 concludes that consumers are more likely to buy unhealthy food products when they pay by credit card than when they pay in cash. Indeed, the pain of paying in cash can curb impulse purchasing of unhealthy products.

Claudia Hammond, author of a new book, Mind over Money, and a presenter on BBC radio, says “No-one has measured that yet, but I would say (contactless cards) will divorce the pain of paying from the actual transaction again.”

Read the original article here.

[1] How Credit Card Payments Increase Unhealthy Food Purchases : Visceral Regulation of Vices, by Manoj Thomas, Kalpesh Kaushik Desai and Satheeshkumar Seenivasan. Journal of Consumer Research Vol. 38 – June 2011