Pain of paying

Paying registers as a loss, and the more visible the payment, the more it hurts.

Pricing and value perception Mainly on Checkout pages
Where it applies

Two of the eight page areas.

HomepageNot typical CategoryNot typical SearchNot typical ProductNot typical CartAlso applies CheckoutMainly here Post-purchaseNot typical

Not usually a sitewide principle. See everything at work on Checkout pages

How to use it

Four ways to use it, and one to avoid.

  • Offer express wallets, such as Apple Pay and Shop Pay.
  • Offer saved cards.
  • Keep payment to as few steps as possible.
  • Offer instalment options responsibly, and describe them accurately.
  • Avoid: pushing instalments as the default, as they can encourage overspending.
What the research found

Cashless payment brings a small rise in spending, and the effect has weakened.

The rise in spending with cashless payment is small, and it has weakened over time.

A meta-analysis of 392 effect sizes from 71 papers found a small but significant rise in spending with cashless payment compared with cash, and the effect has weakened over time. Data from a large US retailer show pay-later instalments increase purchase frequency and basket size. Evidence for express wallets specifically is indirect.

Key research

Four sources, each checked.

Last reviewed

Prelec & Loewenstein (1998) The Red and the Black: Mental Accounting of Savings and Debt Marketing Science Read the source Schomburgk, Belli & Hoffmann (2024)Meta-analysis Less cash, more splash? A meta-analysis on the cashless effect J. Retailing Read the source Maesen & Ang (2025) Buy Now, Pay Later: Impact of Installment Payments on Customer Purchases J. Marketing Read the source Knutson, Rick, Wimmer, Prelec & Loewenstein (2007) Neural Predictors of Purchases Neuron Read the source
Before you use it · UK law

UK pay-later lenders have been regulated by the FCA since 15 July 2026, with affordability checks and clear information required. Retailers that only offer a lender's product are exempt, but instalments can encourage overspending, so describe them accurately and do not push them as the default.

This is simply a pointer to check, not legal advice. Seek legal advice before you put this principle into action.