PEO­PLE WHO PAY BY CARD FOR­GET

HOW MUCH THEY SPEND

The Gulf Today - Panorama - - Have You Heard? -

Us­ing smart cards has nowa­days be­come an easy and con­ve­nient op­tion for daily trans­ac­tions. But do you ac­cu­rately re­mem­ber the amount of the last trans­ac­tion you made with your smart card?

The chances are less as re­searchers have found that cus­tomers who pay for their pur­chases by card are less likely to re­mem­ber the pre­cise amount paid as com­pared to those who make cash trans­ac­tions. The find­ings ap­ply to both sin­gle-func­tion cards that of­fer only a pay­ment func­tion and mul­ti­func­tional, or smart cards which may also in­clude bonus pro­grammes, user iden­ti­fi­ca­tion or other func­tions.

The re­search as­sumes sig­nif­i­cance in view of the fact that a pre­cise rec­ol­lec­tion of past spend­ing has an ef­fect on the will­ing­ness to spend money in the fu­ture, the re­searchers ex­plained. Smart cards com­bine the pay­ment func­tion with ad­di­tional func­tion­al­i­ties that can be di­rectly gov­erned through our smart­phones or smart watches in the near fu­ture, the re­searchers noted. “We wanted to show that in­di­vid­u­als who pay by card have a less ac­cu­rate re­call of the amount paid than in­di­vid­u­als who set­tle their bill with cash,” said Ru­fina Gafeeva from the Univer­sity of Cologne in Ger­many.

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