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Chapter 1: Why do we spend more when we pay by card?
Why do we spend more when we pay by card? Thanks for asking. It's no surprise, especially if you tend to reach for your card instead of cash. But if you sometimes spend without thinking, your card may be part of the reason. In 2025, meta-analysis found that people consistently spend more when paying by card than with cash.
Unlike a single study, it combines results from multiple studies to give a more reliable picture. Here it draws on 71 studies across 17 countries with more than 11,000 participants, making the conclusions particularly solid. The difference per purchase may be small, but over time it adds up. But why? It comes down to the pain of paying. Cash makes spending feel real.
You physically hand over money, see it leave your wallet and instantly know how much you've spent and what remains. That creates a sense of loss. With a card, that feeling fades. Spending is less visible and more abstract. As a marketing researcher explains, handling cash makes payments more concrete, while digital payments make it easier to lose track.
Because nothing tangible changes hands, the act feels less significant, so we're more likely to spend freely. And does contactless payment make things even worse?
Chapter 2: What psychological factors contribute to spending more with cards?
Yes, because it removes even more friction. No pin, no waiting, and sometimes no physical card if you're paying by phone. The issue is that our brains rely on tangible cues to register spending. With contactless, the only concrete element is what you're buying, an immediate reward. And most people don't check their bank balance right away, which makes overspending even easier.
By 2022, more than 60% of in-store purchases were contactless, according to the Payment Security Observatory. So how can you stay in control of your spending? You don't need to stop using your card, but you do need to make your spending more visible.
One solution is to review your expenses over a month to understand where your money goes, then set clear budgets for things like leisure or shopping. You can also set spending limits. If you prefer something more tangible, using cash can help you better visualise your spending. There's also the cash stuffing method.
Divide your budget into envelopes for different categories like going out or shopping. Once an envelope is empty, you stop spending, which naturally encourages restraint. If you prefer digital tools, some apps replicate this system to help you track spending and maintain a sense of control. The card itself isn't the problem. It's a convenient and secure tool.
The key is staying aware of how you use it. There you have it.
Now you know why we spend more when we pay by card. In under three minutes we answer your questions and help you understand the true meaning behind the trends, concepts and acronyms that are making headlines. Listen along and you really will know for sure.
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