Cashless Spending Experiences and the Pain of Paying: A Qualitative Study of Digital Payment Use

Abstract

The widespread adoption of digital payment systems has fundamentally altered how individuals perceive and engage with money. This qualitative study examines the psychological dimensions of cashless spending among young Indian adults aged 21–28, with particular focus on the "pain of paying" the emotional discomfort associated with financial outflows. Using a phenomenological design and semi-structured interviews with 12 participants drawn from diverse professional backgrounds, the study identified seven core themes: digital abstraction and the unreal nature of money; the micro-spend trap and realisation gap; cash as a strategic cognitive brake; affective regulation and the boredom-impulse loop; social financial dynamics in group transactions; perceptual gamification of monetary value; and automation and invisible costs. Findings reveal that frictionless digital interfaces reduce emotional feedback during spending, weaken psychological ownership of money, and foster habitual rather than deliberate financial decision-making. Participants demonstrated adaptive agency  strategically reverting to cash to restore spending awareness. Theoretical grounding in dual-process theory, mental accounting, and behavioural economics contextualises these lived experiences. The study underscores the need for transparent, psychologically informed digital payment design and targeted financial literacy interventions