WORK SMARTER NOT HARDER: Tap-to-Pay Could Tap You Out

Study: People Who Use Mobile Payments Are More Likely to Overspend

Tapping to pay could be tapping too deeply into your budget.

Many of us now use our mobile phones to make contactless payments; but you might want to rethink it.

University of Puget Sound researchers have found that people who use these payment methods are more likely to overspend.

They found people who used mobile payments specifically had a 34-percent higher chance of spending more than their yearly income, compared to those who used other payment methods.

They also had consistently higher scores for overspending behaviors, including struggles with money management, and poor credit card behaviors.

Study leader Sun Ahn says, “Overspending via mobile payment may be linked to the intangible nature of the transaction, coupled with its convenience, which allows the user to detach from the transaction.” We could swipe our own money away by swiping that phone.

Tap here, for more: (Daily Mail)