Forms of payment – The daily blog of behavioral and cognitive economics

Why Our Form of Payment Matters

Money is similar and different. All money can serve as a unit of value, a store of value, and a medium of exchange. But, because our forms of payment differ, so too does our incentive to spend. 87 percent of us said we used cash at least once during the past 30 days:And yet, when we look at the value and number of transactions, cash becomes less important. Instead, we used credit, debit, and prepaid cards for close to three-quarters of our transactions: till, the kind of money we use depends on what we are buying. Comparing cash, checks, credit and debit cards, we would see where our money preferences differ. ….[READ]