Are new payment technologies providing too much liquidity?

applepay

Will Apple Pay Make Us Broke?

For those with enough money to take advantage of them, new payment technologies like Apple Pay, Baidu Eye and Amazon’s Firefly could offer unprecedented convenience. But some observers worry that the ability to buy stuff out in the physical world almost as easily as you can currently buy e-books on Amazon might leave consumers bankrupt and unfulfilled. At Slate, Ariel Bogle wonders whether the “frictionless consumption” offered by these technologies will encourage overspending. She quotes the business professor Eric Johnson, who says, “The more you disconnect spending from physical spending, also known as ‘decoupling,’ the more you’re likely to spend.” He notes that Apple Pay, like credit cards, may have such a decoupling effect. ….[READ]

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