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Researchers use the phrase pain of paying to describe the negative feeling associated with spending money. Cash makes the amount leaving someone's possession physically obvious, while cards and digital payments can make the transaction feel less tangible. This difference can influence spending behavior in some situations.
Modern contactless payments reduce the physical steps required to complete a purchase even further. Convenience changes more than transaction speed—it can change how spending feels. A quick tap can make money leaving seem surprisingly invisible.
© MIT Sloan