RICHMOND, VA (WWBT) - Researchers have found that using mobile payment apps leads to more people overspending.
University of Illinois researchers studied consumers in China, where mobile payment is widespread. They found that people who use mobile wallets make 23% more purchases and spend an average of 2.4% more per transaction.
So, why is this? Previous consumer research has shown people spend more using credit cards, compared to cash.
Studies also show people tip more when they use credit cards, too.
The same idea holds for mobile payment. The dollars feel less real when they aren't in your hand.
If you use mobile payment, you should also use an app like Mint that helps you track your spending. And if you tend to buy impulsively - budgeting and spending cash can help you stay on track.
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