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  • Category: Miscellaneous

    Do we become less judicious while making payments through digital methods?

    You went to the mall to purchase things. You selected the items of your choice, put them inside the trolley and proceeded to the payment counter to pay. Now, the choice is yours whether to pay by cash or card. Nowadays many people use digital methods for payment and the use of debit/credit cards and mobile wallets are increasing day by day. Even for recharging the prepaid mobile with top-up vouchers, we use mobile wallets for paying the vendors. Though the tendency of using these digital transaction methods is more among new generation, the older generation is not far behind.

    Many people of older generation think that using cards or mobile wallets rather than cash, for making payments, increase the tendency to spend more and people tends to care less about spending money while using digital payment methods. They think since you are not handling the cash directly, you are becoming less aware, psychologically, about the amount you spent. Members, do you agree that we become less aware of the amount spent while using digital methods for making payments?
  • #648678
    I agree with the olden generation thinking perspective that when you make payments through digital mode, the purchasing power increased and you tend to make more bill amount. The other day I had been D mart and being Sunday there was heavy rush. All of them are paying through digital payments and I preferred to do it by card. As soon as the cash counter person noticed that I am going make payment by cash, he called me to next counter to take cash payment. On seeing this preferential treatment others also started to join me the queue and the cashier insisted that he would take only cash and thus they are seen fuming. So what I mean to say that even though it is the big mall and digital payments are accepted, there are some cash transaction which has to be done by them on daily payment basis for which they need cash. So cash payments hold good for us and the store too.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #648682
    Earlier we were habituated by paying cash and were always cautious as we had some fixed cash in our wallets and we had to do many things.

    With digital payment it is not like that. Even if you overspend it is taken care by your money in the account or loan in case of credit card.

    This is the main reason why people are not much calculative while paying through digital means.

    People who are in a habit of spending only the limited amounts are using their card also like cash money and are very particular in purchasing items.

    Knowledge is power.

  • #648709
    It is true. The digital payment methods and usage of credit cards will indirectly make you spend more. An experience of mine may not be believed by many members but just I like to mention. Ten years back my colour TV remote was not working properly. We want to get it repaired. In addition to that, we had some other purchase requirements. Hence on a Sunday myself and my wife with my two sons went out for the purchases. We went to an electronic shop and shown the remote. He advised us to go to the dealer. We went there and in his shop, the display of various models of TVs was so attractive that we decided to change the TV in an exchange programme. This cost me about 20,000 rupees expenditure. If I had to pay cash I might not have gone for that. But as I had a credit card with me I could do it. This is just an example. Many people will be doing it many times and the very purposes of these cards are to give more purchase capabilities to the buyer and enhancing the sales of the products.
    always confident

  • #648711
    This could be the generalized perception but on the other hand could be the fact too & therefore this could be on both ways. While the time we are using cash we are very well aware of about how much being spent on the particular transaction but on the other hand while doing electronic transactions through debit or credit cards & after successful execution we get an SMS to the registered mobile number along with the balanced amount in our account which also let us know about our limitations, And therefore whatever the medium which we are using, especially the lower & the middle class has a close eye on every transactions which they make & the decisions are taken accordingly.

  • #648714
    I don't think we overspend with the digital payment facility. Instead of carrying cash in our pockets, we carry it in the form of a card. Any money minded person or who spend money within a budget will always be careful with the card too.
    No life without Sun

  • #648765
    Yes, I think most of us are less judicious while making payments through digital methods. I agree with Umesh that we are aware of what is left in the wallet when we make payments by cash and so restrict ourselves to be within the possible limit. But in the case of digital payments, though we may be aware of the balance in our account, the limit is extended and we may not worry about adding on to our list. Suppose you have only Rs 500/- in your wallet and there is no option of paying through digital mode, you won't venture to spend more than what you have; but when you pay digitally, the self-assurance about the balance you have in your account may prompt you to spend more than what you planned. I mean the restriction, though present, will not be as limited as in the case of paying by cash.
    'Real knowledge is to know the extent of one's ignorance' - Confucious.

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