The convenience of cashless payments simplifies transactions and makes it more likely for consumers to do impulse purchases. When payments are just a tap or swipe away, the psychological barrier of handing over physical money is reduced. The process thus feels less tangible than using cash because there’s fast decision making without much thought. Many digital payment apps also offer discounts and rewards in order to encourage unplanned spending.
The widespread availability of digital payment methods means consumers are constantly presented with opportunities to buy. Online marketplaces and in-store point-of-sale systems make spending seamless, often bypassing the need for carrying cash. As a result, the perceived effortlessness of cashless payments directly contributes to an increase in spur-of-the-moment buying behaviour.
