In a recent article posted online at Slate, the author, Ariel Bogle, discusses how instant payment options, such as the impending Apple Pay, can lead to less sensible spending (and more debt). In other words, taking away the pain of paying completely by making purchasing quick, easy, and always accessible (even when you aren't looking for a purchase occasion) can lead to more consumption and higher levels of debt.
"“The more you disconnect spending from physical spending, also known as ‘decoupling,’ the more you’re likely to spend,' said Eric Johnson, professor of business at Columbia University. Think of casinos using chips or Club Med using bead-necklace drink tokens. 'If I’m taking cash out of my wallet, I’m keeping track of what I’m spending, but when I use a credit card, I don’t post those transactions until the end of the month when the bill hits, and the same with Apple Pay.'”
Thus, some pain is good - it keeps spending under control by triggering self-control and enacting deliberation at the time of purchase.
"“The more you disconnect spending from physical spending, also known as ‘decoupling,’ the more you’re likely to spend,' said Eric Johnson, professor of business at Columbia University. Think of casinos using chips or Club Med using bead-necklace drink tokens. 'If I’m taking cash out of my wallet, I’m keeping track of what I’m spending, but when I use a credit card, I don’t post those transactions until the end of the month when the bill hits, and the same with Apple Pay.'”
Thus, some pain is good - it keeps spending under control by triggering self-control and enacting deliberation at the time of purchase.
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