Apps that let us tap at stores to pay for products and services are increasingly prevalent on our phones and watches. Some customers rely only on these tap-to-pay networks, leaving their cash and credit cards at home. (Photo : Helcim Payments / Unsplash)
Apps that let us tap at stores to pay for products and services are increasingly prevalent on our phones and watches. Some customers rely only on these tap-to-pay networks, leaving their cash and credit cards at home.
Do the hazards accompany all this ease, though? Using the tap feature on your phone to pay for groceries or clothes, paying for a meal at a restaurant, or covering the cost of cosmetic services may all lead to overspending. See what three financial gurus have to say about striking a balance between modern technologies and sensible spending practices by reading on.
How Does It Work?
Tap-to-pay is a contactless payment method that allows customers to complete transactions by tapping, waving, or hovering their credit card or mobile device near a payment machine. This method is identified by a Wi-Fi-like symbol on tap-to-pay credit cards. If a customer does not have a tap-to-pay card, they can load their credit card information into their mobile device to make secure tap-to-pay transactions.
Tap-to-pay offers a nearly seamless payment experience, making transactions fast, easy, and convenient for customers. However, it can pose challenges for individuals with impulsive tendencies, as it requires relying on self-control rather than the practical barrier of not carrying cash or a credit card.
How to Prevent Overspending
The convenience aspect will always be present, but while making tap-to-pay transactions, take these tips into account to limit your expenditure.
Avoid making tap-to-pay your go-to way of payment: Even if it's a little less practical to fish your wallet out of your purse or take out your money clip, the friction and time barrier you're putting up might give you the moment of micropause you need to reconsider your purchase.
Recognize when to utilize tap-to-pay: Establishing your own guidelines for when to utilize tap-to-pay might be helpful. Instead of utilizing it for luxuries or expenditures above a certain threshold, think about limiting its use to necessities like food or petrol.
Return to the fundamentals: There's also a traditional approach to improved money management. For those who are worried about credit card debt or who want to stay to a strict budget, traditional cash could be a better option.
Decrease the likelihood of impulsive purchases: Analyze delaying any impulsive purchases for at least a day so you have time to analyze your options and see whether they fit within your total budget. This will provide you more time to search for discounts and compare costs online.
The content provided on MoneyTimes.com is for informational purposes only and is not intended as financial advice. Please consult with a professional financial advisor before making any investment decisions.
