Here’s something really disturbing, Apple Pay might be able to change your brain itself. Psychology and neuroscience indicate that payment applications such as Android Pay have the potential to change the way people think about money.
People that use payment apps would more likely to make purchases because they make it easier to spend money. Consumer researchers like the University of Utah’s Sachin Banker have long noted that people are more reluctant to make cash transactions because they give up something physical, Wired reported.
Electronic payment methods like credit cards do involve an obvious physical loss so they lead to less psychological pain. That’s one reason why banks like such apps they might lead to more overdraft fees and interest payments and more profits for banks. It’s also why Walmart (NYSE: WMT) was so quick to roll out Walmart Pay, to get people buying more.
How Modi is Driving Electronic Payment
That means such apps might stimulate the economy with more economy. That might be what India’s Prime Minister Narenda Modi was hoping when he declared two of that nation’s biggest bills demonetized or worthless on November 8.
The amount of money moved through payment Paytm; one of the few mobile phone payment apps available in India grew by 1,000% after Modi made his move, Business Insider reported. Downloads of the digital wallet, which is backed by Alibaba Holdings (NYSE: BABA) grew by 300%.
Apple (NASDAQ: AAPL) needs to hurry up and get Apple Pay rolled out in India. The government is doing everything in its power to help it. So far neither Apple Pay nor Alphabet’s (NASDAQ: GOOG) solution; Android Pay, are available India. That might change given Paytm’s success.
Apple Pay for Charity
One group that undoubtedly hopes research like that of Mr. Banker is accurate is America’s charities and nonprofit organizations. Apple just added a donate with Apple Pay feature to the popular app.
The feature lets users donate money directly to charities like UNICEF, Doctors without Borders, Feeding America, Save the Children, the World Wildlife Fund, American Red Cross, and St. Jude Children’s Research Hospital, an Apple Press release indicates. PBS, the American Cancer Society and the United Way are listed in coming soon.
One conspicuous absence here is churches and other faith based organizations. I imagine there will soon be big pressure on Apple to add them and political donations. During the last presidential campaign some candidates raised big money with small donations.
U.S. Senator Bernie Sanders raised $73 million in small donations in 2015 through digital donations of less than $30. That means large amounts of money can be raised this way. So Apple Pay might change charity and politics by letting average people bypass large donors and give to the candidates and organizations of their choice.
It looks as if Apple Pay and similar solutions have the potential to change the economy, the world and our minds. The coming cashless society might totally revolutionize the economy and everything else.