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'Guilt-free' tap and pay cards fuel debt crisis: Contactless payments gives instant gratification because it doesn't feel like spending real money

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http://www.dailymail.co.uk/news/article-4023468/Guilt-free-tap-pay-cards-fuel-debt-crisis.html

Quote
  • Tap and pay plastic cards removing pain and guilt from spending on Christmas
  • Process of taking real notes out of a purse or wallet acts as brake on spending 
  • Experts at London Business School warn it's threatening ‘dangerous’ debt storm
 

You can see why they want to move to a cashless society as people clearly lose all concept of money!

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facepalm.gif

Nothing to do with the oodles of 20+ months (or occasionally 30+ months) one off small fee % balance transfer credit cards, no?

Edited by blackhole

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Surely anybody that can not figure out that tapping their card at a till and getting something in return is spending money shouldn't be allowed any in the first place.

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when I go overseas I spend foreign currency more readily...doesn't seem like real money. Well that and you get value...which is a novelty...

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We're more conscious of spending money, when we physically hold it; feel it, against the value of the purchase. The notion of cards creates a non-connection between affordability and desires.

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Whilst I agree that contactless makes spending somewhat easier, I don't see a huge difference between having a normal and a contactless card.

And do you really believe every DM ******** statistic? 

Some £2billion was spent on contactless cards on Black Friday – half in the High Street and half online. This was up by 13per cent on last year
 

While this may be true, what exactly is the relevance of contactless for the online shopping?  Contactless feature isn't even used when shopping online!  

Also, contactless transactions are limited to £30.  Surely, the majority of the £1billion spent on high street was in larger (above £30 and therefore non-contactless) transactions?!!

Do not believe everything DM prints!

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I guess the point is that we are not very rational beings. On one level, if the magic card keeps allowing us fill up on goodies then our monkey brain is very happy.  Retailers know this and this is why they want to reduce the friction and pain of payment as much as possible. Amazon do it through one click, offline retailers like contactless. Their ideal is no doubt Amazon's new store where you simply turn up, grab stuff off the shelf and are charged as you leave.  Apply that to all kinds of experiences e.g. automatic charging when you enter a nightclub, cinema etc - and you can see the potential. A whole new bunch of stuff can be charged for too. Tap the sales assistant in your local hifi shop for their expertise before buying from Amazon more cheaply? You'll be charged for each minute you spend with the sales assistant (discounted if you actually buy). We'll simply walk around being charged for stuff all of the time - and likely semi-unknowingly. It's a retailer's wet dream - the weaponisation of payment. 

Personally, I'm very frugal and appreciate contactless - but I can envisage the potential for trouble with my younger self. Imagine making the transition from teenager to adult nowadays. You've never known anything different, and if you are financially illiterate as most of the population are, you are completely and utterly fooked!

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Cash-only Pin here doesn't like contactless payments. You can't see the money go. Especially for trivial purchases, like cups of coffee.

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I draw money out and then spend it. I nfact, I draw out 150/20 a week for my personal spending for a week or so. Thats way, when its gone, its gone, and I stop spending.

Its adds an extra step or hurdle to the process.

Keeps a bit of a connection.

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Withdraw in cash an amount for small incidentals each week, when it is gone it is gone.....will not be withdrawing extra now that inflation is extra, just buy less.......I think for me it is easier to see what has been spent and what is left when can visibly see a sum of money and can fit that sum into number of days left to spend it, anything left can be rolled over........I suppose bit like in days gone past when people used to put their cash into different jars to cover for different bills and outgoings......no intention in using swipe system as my maths is not good enough to keep a tag. ;)

 

 

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I always take cash out, especially on a night out... might be £20-30 and when it's gone, it's gone. I can see how easy it'd be to go 50% over without realising using the contactless method.

A mate and myself at the NEC motorbike show, he was using contactless buying all sorts of silly non-essentials - leather nourisher from a DOSB (?deluded old...) £25 who demonstrated the effectiveness of the product and IMO did a no better job at it than water or soap/water. Soldering wire from a Swedish gentleman £40 for 2metre. I added up the cost of his visit in my head and asked him how much he thought he'd spent and it was £80-90 (excluding entry). Actually it was closer to £120. 

He was terrible with money in the past and racked up £20,000 on credit cards, stressed him out loads until I told him that it's not real, numbers on a screen or statement and just don't pay then in six years the problem would just go away. He did that not once but twice. 

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The aim has been to progressively disassociate people from physical money. Our social engineers in chief understand that physical money acts as a natural bar on spending - people are far more considered and cautious about parting with it.

Whereas with a card or electronic 'money', it often doesn't even feel real. It's like you've spent nothing at all.

Edited by Errol

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13 hours ago, doomed said:

Surely anybody that can not figure out that tapping their card at a till and getting something in return is spending money shouldn't be allowed any in the first place.

Average I.Q is under 100.

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13 hours ago, doomed said:

Surely anybody that can not figure out that tapping their card at a till and getting something in return is spending money shouldn't be allowed any in the first place.

Everyone can do stupid things, however clever they are - Issac Newton lost money in the South Sea bubble.

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Guest

Banks and merchants accept your transaction without any human input and assume your consent.

If something has gone wrong and you've been mischarged or double charged, you have to extend a lot of effort to fix it.

You can't just click a button to report a problem and have it dealt with. You have to phone them and be put on hold.

 

Edited by phantominvestor

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I'll bet if you looked into how IQs have changed over the last few decades, you'll find that like everything else they've suffered from inflation.

 

A 100 IQ score today probably wouldn't get you as much actual intelligence as 100 points would have 10 or 20 years ago ....

Edited by Sour Mash

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Notice for the first time today that my bank don't include contactless payments in my cleared/uncleared balance on my online statement, they just suddenly come off 2/3/4 days later. No idea why.

While i dont believe contactless payment isnt 'real money' i'm having an interesting experience piecing together my works christmas night out from the contactless payments randomly coming off my statement yesterday and today. No idea if there is more to come off tomorrow. 

 

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