One-click purchases, saved credit card details and next-day shipping are making it easier than ever for consumers to get the instant gratification they crave when shopping online. The removal of obstacles online makes it easier for consumers to get what they want at a time that suits them.
However, it’s easy to overlook how this ease of access has affected the collective consumer psychology, potentially opening the door to more impulsive spending – especially when we look at online shopping and the spending habits we develop over many months and years.
In this article, we’ll take a closer look at how this lowered barrier to entry has impacted how consumers spend their money, covering key areas such as e-commerce, digital subscriptions and online entertainment.
The effortlessness of online commerce
Online commerce has accelerated in recent years due to the vast innovations we’ve seen in web development and the tools we can integrate into our online shopping platforms, particularly when it comes to loyalty programs and customer retention.
When we use payment details that are already saved on our favorite e-commerce stores and marketplaces, it can make spending money seem less real – despite it having the same effect on our bank balance. While not saving these details isn’t a way to curb this impulsive mindset, it can help to reduce the temptation.
Many websites now offer one-click purchases for logged-in customers, allowing them to bypass the typical checkout page and move on to their next desired product. This speed of completion makes it much easier for us to act impulsively and not give the prospective purchase the attention and thought it deserves.
In the same way, online checkout experiences have been streamlined by the use of biometrics, both on our phones and the increasingly smart laptops many of us use every day. Instead of needing to re-enter a card number repeatedly, consumers can scan their face or tap their finger, and upload their details instantly.
The rise of habitual spending
Online spending can easily get out of control when it comes to recurring payments, especially when each payment is just a few dollars. The low monthly costs can feel particularly insignificant but can end up costing users huge amounts of money every month once they begin to add up.
Users can easily fall into this trap by signing up for free trials that are contingent on entering their card details. The websites that offer these free trials not only rely on their service being too good to refuse, but also that users will forget about the upcoming payment and then lack the motivation to try and cancel the subscription. To cancel these subscriptions, users often have to jump through many hoops, which can make it too much work just to save a small amount.
Similarly, online gaming platforms can make small purchases become habitual, such as needing to buy coins to play certain games or unlock specific loot items. This gamified spending has no tangible impact on their real-world lives but can become addictive, especially when combined with peer pressure and the need to maintain appearances. These purchases continually blur the line between entertainment and players being able to pay to get an edge.
Online entertainment in the 2020s
The rapid growth of new industries, both online and in the real world, has given rise to many more options for consumers to choose from, ranging from digital live shows to new online casinos. These new industries encourage users to spend initially and continue doing so as a returning customer, often offering enticing bonuses and loyalty programs.
Online content creators have become top-tier celebrities over the past few years, with some Twitch and YouTube streamers making thousands of dollars from subscription fees and voluntary donations. This money can be given in the hope of the user being given a shoutout on a live show or video, which can give them a sense of recognition and reward.
Immersive online casinos have arguably been the biggest winners when we look at the digital revolution that has taken place over the past decade or so. These platforms have been expertly crafted so that users can play from absolutely anywhere, while also integrating with many popular payment methods, such as e-wallets and cryptocurrencies, to help engage those who want added security and privacy.
Remaining in control as a consumer
However, as easy as it might be to visit our favorite websites and spend money however we choose, players still need to remain in control and ensure that they interact responsibly with these platforms.
It can be challenging knowing what expenses are being allocated where, which is why it can be handy to keep a log of any subscriptions, and maintain a separate pot for leisure-related spending. We know this isn’t easy, and it can be exhausting having to constantly fight against an entire system designed to encourage you to spend money, but taking some time to try and control your spending will pay dividends.
There are a few things that users can do to regain control of their spending, such as imposing a 24-hour wait before finalizing any big purchases, as a way to give them a chance to consider if this is something they really need or want. It can also be handy to allocate disposable funds for the week to a prepaid card with no credit capabilities, as this can provide better control of the overall budget.
Final thoughts
As we have seen, the increase in online access has made it much easier for consumers to spend money in a wide variety of places, which means that users need to exhibit a much greater sense of self-control when shopping or exploring their preferred social media platforms.
As technology continues to develop at a rapid pace, new finance-related tools, such as AI accountancy assistants, could help make this experience much easier, especially for those without a solid grasp on numbers. However, the fact remains that it’s up to us to ensure that we act responsibly and continue to show restraint when spending online, especially with temptation beckoning around every corner.
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