In recent years, there has been a massive shift in how people carry out their transactions. As more people are preferring?plastic cards to cash, the popularity of the cashless trend is only growing.
While cards are often blamed for triggering overspending and increased consumption, it is hard to argue that they have become a more convenient?way to make payments. A new study has provided a neural explanation for the preference.??
Credit cards trigger the same chemical reaction in a human brain that is observed in those people suffering from addictive behaviour, like using drugs,?and therefore may cause overspending, a study?published in Scientific Reports?suggested.
The research was conducted by a team of scientists from?the?Massachusetts?Institute of Technology (MIT).
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The team studied brain scans of different groups of participants:?those who used personal credit cards to make everyday purchases?and those who stuck to cash. And, according to the study, cash purchases do not stimulate the same "reward networks" in the brain.??
The researchers found that credit cards 'step on the gas' by increasing motivation to spend regardless of expense.
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But different cards can spark different desires, the study showed. Cards used in restaurants and on holidays create a greater appetite for spending than cards used to buy fuel, for example.
Researchers do not rule out that the same reaction might be caused by any type of?"disruptive payment technology", suggesting that new methods of purchasing or digital currencies can stimulate the "reward network" in unexpected ways, making people step back from their old financial habits.??
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