NEW YORK ( LowCards.com) -- First, it was credit cards. Soon it will be smartphone payment apps.Like cursive handwriting, paying with cash has been made practically obsolete by technological advances. More cell phone manufacturers are adding near-field communication chips to their handsets, allowing consumers to use their phone like a credit card at retail stores.
|The Nokia 6131 NFC is among a wave of smartphones coming equipped to serve as a credit or debit card to pay admission or at retail stores, eateries and vending machines.|
- Credit cards are much less transparent and make it much easier to follow through on a transaction. This reduces our psychological barriers and makes it easy to ignore the warnings of our inner voice.
- Paying with a credit card separates the purchase from the actual payment. Since actual payment occurs long after the purchase, it dulls the pain of payment. The pleasant feelings you get from the purchase and immediate gratification are almost disconnected from the reality of the payment.
- Credit cards combine a month of purchases into one payment. It is easy to look at the final number and overlook how much you really spent on specific purchases or categories such as clothes, groceries, dining or entertainment.