Mobile payment makes you spend more money!
Experts say that in the first years of credit cards, those who used these cards had a desire to pay more money for a certain product than those who used cash, but this habit has decreased over the years.
Noting that the willingness of mobile payers to spend more money may be lost in the coming years, as is the case with credit cards, Prof. İbrahim Şenay from the Department of Psychology (English) emphasized that using cash is a factor that reduces the habit of spending more money on the same product.
Üsküdar University Faculty of Humanities and Social Sciences Department of Psychology (English) Faculty Member Prof. İbrahim Şenay evaluated the effects of the digitalization of money and the widespread use of credit cards on behavioral economics and habits.
When the credit card first came out, it caused a habit of spending more money!
Stating that in the first years of credit cards introduced, credit card users had the desire to pay more money for a certain product and the feeling of feeling less uncomfortable while spending money than those who used cash, Prof. İbrahim Şenay expressed that "Individuals had the habit of spending more money. However, over the years, this habit has decreased, and we no longer see a difference in spending behavior among those who use credit cards or cash."
Using cash reduces the willingness to spend money
Compared to the increasing mobile payment method in recent years, using cash is a factor that reduces the habit of spending more money on the same product, Prof. İbrahim Şenay stated that "However, the willingness of mobile payers to spend more money with credit cards may be lost in the coming years. What is decisive here is how much experience they have with the new payment methods. As people's experience with the new payment method increases, it seems that new payment methods are starting to have the same function on human behavior as cash."
People who are asked to count money are triggered by their desire for power and control
Prof. İbrahim Şenay stated that "Some studies show that people who are asked to count money are triggered by a desire for more power and control than others," and Şenay added that "These individuals need to socialize less and can behave more selfishly. We see that the same effect does not occur when people use their credit card. According to these studies, people who make it a habit not to use cash (not credit cards) can be less selfish and more social."
Does the increase in credit card usage also affect consumer spending?
Noting that recent studies show that the increase in the use of credit cards does not make a difference in consumer spending, Prof. İbrahim Şenay stated that "However, of course, such an increase in consumption may still be caused by those with low credit card payment experience. However, this will not make a significant difference in the long term. Recent studies show that individuals do not need to worry about which method they use for their shopping."
Üsküdar News Agency (ÜNA)