A study finds that people are more likely to overspend when they use cashless payments.

The increasing use of digital payments in both developed and developing nations has had a substantial impact on consumer buying patterns. According to a study done by researchers from the Universities of Adelaide and Melbourne in Australia, individuals are spending more money now that they may pay using cashless transactions. In order to conduct the study, the researchers looked at people's spending patterns in 17 different nations and performed a meta-analysis of 71 prior publications. They discovered that people are more likely to spend money on ostentatious and often needless luxuries due to the ease of shopping. 
"To prevent spending more than planned, we recommend consumers carry cash instead of cards whenever they can, as it acts as a self-control method," Lachlan, a marketing researcher, said. Schomburgk from the University of Adelaide, as per Science Alert. 

"People physically count and pass over notes and coins when using cash, which highlights the act of spending. It is simple to lose track of how much is spent if nothing is physically given over," he continued. 

Researchers found that there has long been evidence of a connection between high expenditure and cashless transactions. They did, however, note that this is the first time that such a large-scale tracking of people's purchasing patterns has been done. 

According to the researchers, the expenditure difference was "small, but significant". It was higher for "conspicuous consumption" spending, or the purchase of goods that serve as status symbols, such as expensive jewelry and apparel. The group also noticed that donations and tips are unaffected by digital payments. Individuals  spend money on donations as much as they used to with cash, they added.

"Against our expectations, we found that cashless payments do not necessarily lead to greater tips or donations, in comparison to cash," stated Schomburgk.