We spend more with cashless payments
University of AdelaideA study by researchers from the University of Adelaide has found that when using cashless methods of payment, individuals tend to spend more when purchasing. University of Adelaide PhD Student Lachlan Schomburgk, who led the study, says the research found support for the existence of a positive “cashless effect”, which is when consumers spend more when using cashless payment methods in comparison to cash. The study suggests the cashless effect leads people to spend more when purchasing products that are typically used to signal status, such as jewellery. However, the effect was not observed when donating or tipping.