Experts state that in the early years of credit cards, users were more willing to pay more for a certain product compared to cash users, but this habit has decreased over the years.
Prof. Dr. İbrahim Şenay from the Department of Psychology (English) noted that, similar to credit cards, the willingness of mobile payment users to spend more money might also disappear in the coming years, emphasizing that using cash is a factor that reduces the habit of spending more on the same product.
Prof. Dr. İbrahim Şenay from the Department of Psychology (English), Faculty of Humanities and Social Sciences (İTBF) at Üsküdar University, evaluated the effects of money digitalization and the widespread use of credit cards on behavioral economics and habits.
When credit cards first emerged, they led to a habit of spending more!
Prof. Dr. İbrahim Şenay stated that in the early years of credit cards, users were more willing to pay more for a certain product and felt less discomfort when spending money compared to cash users. He said, “They had a habit of spending more money. However, this habit decreased over the years, and now we don't see a difference in spending behavior between credit card users and cash users.”
Using cash reduces the desire to spend money
However, when compared to the increasing mobile payment methods in recent years, Prof. Dr. İbrahim Şenay stated that using cash is a factor that reduces the habit of spending more on the same product. He commented, “But just as with credit cards, in the coming years, the willingness of mobile payment users to spend more money might also disappear. What is decisive here is how much experience individuals have with new payment methods. As people's experience with new payment methods increases, it seems that these new methods begin to have the same function on human behavior as cash.”
People asked to count money have their desire for power and control triggered
Prof. Dr. İbrahim Şenay said, “Some research shows that people asked to count money have a greater desire for power and control triggered compared to others. These individuals feel less need for socialization and can act more selfishly. We see that the same effect does not occur when people touch a credit card. According to these studies, people who make it a habit not to touch money (not credit cards) may be less selfish and more social.”
Does the increase in credit card usage also affect consumer spending?
Prof. Dr. İbrahim Şenay noted that recent research shows that the increase in credit card usage no longer makes a difference in consumer spending. He concluded, “However, of course, for those with low credit card payment experience, it might still cause a slight increase in consumption. But this will not create 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.”