## Colophon tags:: url:: https://www.livemint.com/mint-lounge/business-of-life/digital-payments-upi-mistakes-overpay-overspend-11740286712830.html %% title:: Are digital payments changing our relationship with money? type:: [[clipped-note]] author:: [[@livemint.com]] %% ## Notes > Are digital payments changing our relationship with money? — [view in context](https://hyp.is/ZvSsbvHsEe-JMPe1-BXcww/www.livemint.com/mint-lounge/business-of-life/digital-payments-upi-mistakes-overpay-overspend-11740286712830.html) ⬆️ date:: [[2025-02-23]] > In January 2024, the Indraprastha Institute of Information Technology (IIIT), Delhi, published a study titled From Cash to Cashless, revealing that 74.2% of participants spent more due to UPI, while only 7% spent less. But, we must also confront the reality that our reliance on digital transactions might be causing us to overspend erroneously too. — [view in context](https://hyp.is/j9x_nvHsEe-8XW8Hv6acdQ/www.livemint.com/mint-lounge/business-of-life/digital-payments-upi-mistakes-overpay-overspend-11740286712830.html) > One person shared how he mistakenly sent ₹30,000 to his cable guy instead of his friend-in-need through his mobile banking app. Another almost entered their six-digit UPI PIN as the amount to be paid at a store. — [view in context](https://hyp.is/m4_ihvHsEe-R0qeol0dNiw/www.livemint.com/mint-lounge/business-of-life/digital-payments-upi-mistakes-overpay-overspend-11740286712830.html) > We’re prioritising speed over mindful spending because online payments dull the pain of parting with money, says behavioural scientist Anand Damani. Before the pandemic, when digital transactions weren’t the norm, “if you had ₹5,000 in your wallet and spent ₹3,500, you’d immediately register the remaining cash and adjust your spending," he explains. — [view in context](https://hyp.is/0j36vPHwEe-hbZu-yrUHmA/www.livemint.com/mint-lounge/business-of-life/digital-payments-upi-mistakes-overpay-overspend-11740286712830.html) > Anthropologist Gayatri Sapru cites a 2019 research paper, Cash, Card or Smartphone: The Neural Correlates of Payment Methods, published in PubMed Central, a US medical journal. It explains that when we handle cash, the parietal cortex in our brain—responsible for processing sensory information and controlling actions—helps us retain a sense of value. “But with digital payments, like scanning or tapping, that part of the brain stays inactive. As a result, you don’t make the neural connection between spending and losing money," says Sapru, who runs a cultural strategy consultancy called Folk Frequency in Mumbai. — [view in context](https://hyp.is/GzpwuvHxEe-mQROakHVm9g/www.livemint.com/mint-lounge/business-of-life/digital-payments-upi-mistakes-overpay-overspend-11740286712830.html) > I had loaded her concert wristband with ₹2,000, but she didn’t keep track of how much money was left — [view in context](https://hyp.is/QavDIPHxEe-UwUuhiuPCgA/www.livemint.com/mint-lounge/business-of-life/digital-payments-upi-mistakes-overpay-overspend-11740286712830.html) ⬆️ "What do you mean a concert wristband had money?" > Zaveri admits she would appreciate some friction in the digital payments process for herself. With 95% of her transactions happening online, she often feels one tap away from making a mistake. “Thank goodness some platforms still send OTPs, giving you a moment to pause and reconsider a transaction. I’ve abandoned so many transactions at that stage," she says. — [view in context](https://hyp.is/cMqpqvHxEe-O4MeH2E0rmw/www.livemint.com/mint-lounge/business-of-life/digital-payments-upi-mistakes-overpay-overspend-11740286712830.html) ⬆️ Lobbyists thinking of ways to lobby against OTP requirements. :P > But expecting platforms to add friction to the payment process is counter-intuitive, says Kamalika Poddar, a product manager whose fintech newsletter has over 39,000 subscribers on LinkedIn. “Apps are designed to make payments quick and easy. If you’re tired, it’s best not to make digital payments at all," she says. — [view in context](https://hyp.is/kjbG-vHxEe-id6PTeJNxng/www.livemint.com/mint-lounge/business-of-life/digital-payments-upi-mistakes-overpay-overspend-11740286712830.html) > Everyone must create their own friction points to curb overspending and mistakes, says Mohan. And above all, when making digital transactions, “don’t type at the speed you text." — [view in context](https://hyp.is/ul2G8PHxEe-XDct82Rfq_g/www.livemint.com/mint-lounge/business-of-life/digital-payments-upi-mistakes-overpay-overspend-11740286712830.html) > “Ultimately, it’s on us to take that extra second and be mindful. This is a human problem, not a platform problem. We need to be more careful with our money," she adds — [view in context](https://hyp.is/uqAVBvHxEe-HgOfY21J7QQ/www.livemint.com/mint-lounge/business-of-life/digital-payments-upi-mistakes-overpay-overspend-11740286712830.html)