"When using cash, people physically count and hand over notes and coins, making the act of spending more salient. If nothing is physically handed over, it's easy to lose track of how much is spent."
1and 10000are both just a number when using digital payment, but in cash they had a big different.
When you hand over cash, the loss feels tangible and immediate, which triggers a stronger emotional response and encourages restraint. In contrast, digital transactions feel abstract, making it easier to lose track of spending and indulge in impulse purchases.23The Decision Lab. "Pain of Paying."456
This is why people won't get everything they want, because they don't want to lose money.
The “cashless effect” refers to the tendency to spend more when using digital payment methods, as they reduce the psychological "pain" of paying compared to cash.
"cashless effect"cause people to spend more money because they don't get the feeling of losing money.