The pain of paying

paying

How Apple Pay Gets People to Part With More of Their Money

Last week, Amazon introduced a program that represents the next notch on retailers’ asymptotic approach toward a perfectly seamless transaction. One element of the program is a collection of branded ordering buttons that customers can stick to surfaces in their home—press the Tide button on your washing machine to order more detergent, for instance. The brilliance of the buttons isn’t just that they offer up a transaction right when consumers run out of a product—it’s also that they diminish the discomfort that usually kicks in when you part with your money. “The pain of paying” is a phrase behavioral economists use to talk about the differing levels of inhibition consumers feel when they pay in different ways—cash, for example, makes a transaction more painful than a credit card, because you can see your money evaporating before you. ….[READ]

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s