News

Consumers who choose e-payments over cash less able to recall transaction amounts

August 21, 2018

A research team in Germany has found that people not only tend to spend more when they use a credit card, but also that tend to have a less accurate memory of the transaction amount — which is likely the reason why they spend more.

According to a report by Finextra, spending amount recall is even weaker among consumers who use cards tied to ID or bonus programs, and those who pay through a smartphone or wearable.

The research, published by the University of Cologne and the Alpen-Adria-Universität Klagenfurt, suggested that a visualization of money spent — e.g., an payment notification or transaction summary text delivered via mobile — could help to heighten awareness of spending.