SAN ANTONIO – Tapping a credit card or phone at checkout may feel quick and convenient, but research suggests that ease could come with a cost: People tend to spend more when they pay without cash.
A 2024 analysis of more than 300,000 transactions found that consumers generally spent more when using cashless payments, such as credit cards, debit cards or mobile wallets.
The effect was small, but researchers say it may be tied to a psychological concept known as the “pain of paying.”
The idea is simple: Paying with cash makes spending feel more immediate.
If you hand over $80 for dinner, you count the bills, give them away and see what is left in your wallet.
With a card or phone, the payment can be over in seconds. That quick tap may make the purchase feel less noticeable until the bill or bank statement arrives.
A separate study of more than 32,000 people found that using cash creates a greater “pain of paying” than using a card. That may help explain why some shoppers are more likely to spend freely when payment feels effortless.
Experts say people don’t necessarily need to stop using credit cards to regain control.
Instead, they can add small points of friction that make each purchase more visible.
That could include turning on transaction alerts so every purchase triggers a notification.
Shoppers can also remove saved credit cards from apps where they are most likely to buy on impulse.
Financial experts also suggest narrowing down one category where spending tends to add up, such as eating out, coffee or entertainment, and use only cash for that category for a week.
As cashless payments become more common, small spending habits may become more important.
Tracking purchases in real time can help consumers see where their money is going before the next bill arrives.
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