Card payments and the psychology of impulsive spending

The use of bank cards can lead to increased spending due to the lack of physical friction during transactions. Because digital payments make money feel invisible, consumers are more prone to impulsive decisions, particularly when influenced by sales and promotions.

In contrast, using cash provides a tangible sense of loss. The physical act of handing over banknotes allows the brain to register the expenditure more intensely, which can help in managing budgets and preventing unnecessary purchases.