Cash vs Credit?

[Guest notorious546]

https://janav.files.wordpress.com/2016/03/visamastercard.pdf

 

In one study Dun & Bradstreet found that people spend 12 to 18 percent more when using credit cards instead of cash. In McDonald’s restaurant customers on average spend $7 on their credit cards. But they only spend $4.50 if they paid using cash. Behavioral psychologist Dan Ariely tells that — We experience less pain of paying when the form of payment is distanced (credit card) from the pure representation of money (cash). No wonder why the merchants welcomed the concept of credit when McNamara approached them. 

 

- anyone have an idea on how this trend of people paying more with credit cards occur's outside of McDonalds? I have a feeling this isn't the most representative sample set.

[oddballstocks]

This study and others like it played into my thesis for investing in Mastercard years ago.  I'd seen it personally, and in friends.  It's easier to spend more with plastic.

[jawn619]

I think this is a secular trend that is going to continue for a long time. There is still a large runway from growth in the U.S. and even more internationally. I personally like how much easier it is to track transactions but would have to admit that I probably spend more with Credit than Cash.

[bookie71]

http://www.livescience.com/2849-study-credit-cards-spending.html

[beerbaron]

It's quite easy to interpret. For some people the amount of money they have is the choke to their consumption, having a credit card removes part of the choke.

 

For others (like me), the amount of money I spend has nothing to do with my credit card... it's alway minimal!

 

BeerBaron