Casinos use chips.
Arcades use cards.
And Apple has Apple Pay.
It may have started with convenience, but it sure ends with some psychology.
Here's a look behind the curtain (and what it could mean for your business):
Arcades use cards.
And Apple has Apple Pay.
It may have started with convenience, but it sure ends with some psychology.
Here's a look behind the curtain (and what it could mean for your business):
Last Friday, I finally gave in.
Gave up on my Apple Airpod Maxes.
But I'm still an Apple guy.
So I put my old Airpods for sale and headed straight to the Apple store.
You know the drill...
Gave up on my Apple Airpod Maxes.
But I'm still an Apple guy.
So I put my old Airpods for sale and headed straight to the Apple store.
You know the drill...
• Stood at one of those desks.
• Spoke to an Apple genius.
• Decided on the Airpod Pros.
And paid. Right there.
At the desk. Within seconds.
I had gone from being convinced to purchasing in less than 1 minute.
No chance to second guess my choice
• Spoke to an Apple genius.
• Decided on the Airpod Pros.
And paid. Right there.
At the desk. Within seconds.
I had gone from being convinced to purchasing in less than 1 minute.
No chance to second guess my choice
Maybe I didn't recognize this before.
But Apple, at least in this store, had no billing counter.
They have portable credit card machines. And you, obviously, have Apple Pay.
This was the cashless effect in action, and I stood there stunned.
But Apple, at least in this store, had no billing counter.
They have portable credit card machines. And you, obviously, have Apple Pay.
This was the cashless effect in action, and I stood there stunned.
But why did this work for Apple?
3 dead-simple reasons:
3 dead-simple reasons:
1/ Lack of Friction:
• no billing counter
• no steps
• no time
The lesser the friction the better.
• no billing counter
• no steps
• no time
The lesser the friction the better.
2/ No Real Cash:
A study from 2003 found that people will be willing to pay less when they pay with real cash.
Digital payments are just harder to quantify. But with cash, you know exactly what you're losing.
A study from 2003 found that people will be willing to pay less when they pay with real cash.
Digital payments are just harder to quantify. But with cash, you know exactly what you're losing.
3/ Our Inaccurate Projections:
Cash forces us to think in the short term cause we got to pay immediately.
With credit cards, there's no immediate pressure.
Cash forces us to think in the short term cause we got to pay immediately.
With credit cards, there's no immediate pressure.
So now we know how it works.
But how can we use these insights?
Here are 3 ideas to get you started:
But how can we use these insights?
Here are 3 ideas to get you started:
1. Portable Payment Stations
Meet your customers where they are
Don't give them a chance to overthink
Meet your customers where they are
Don't give them a chance to overthink
2. The Gamification Of Money
When done right, it decreases the pain of paying. The best example of this:
Robinhood.
In fact, I'm breaking down Robinhood's gamification strategies in Thursday's email. Join 18k other for $0 here: getrevue.co
When done right, it decreases the pain of paying. The best example of this:
Robinhood.
In fact, I'm breaking down Robinhood's gamification strategies in Thursday's email. Join 18k other for $0 here: getrevue.co
3. Present Credit Cues
Like a visible credit card logo
Studies have found that people, on average, tip 4.29% more in the presence of such credit cues
Your employees will love you for this!
Like a visible credit card logo
Studies have found that people, on average, tip 4.29% more in the presence of such credit cues
Your employees will love you for this!
That's all I got for now!
If you got any questions or ideas, drop them in the comments.
I wanna hear them all :)
If you got any questions or ideas, drop them in the comments.
I wanna hear them all :)
tl;dr
The psychology of the cashless effect
Why it works:
1. Lack of friction
2. No real cash
3. Our inaccurate projections
How to make it work for you:
1. Portable payment stations
2. The gamification of money
3. Present credit cues
The psychology of the cashless effect
Why it works:
1. Lack of friction
2. No real cash
3. Our inaccurate projections
How to make it work for you:
1. Portable payment stations
2. The gamification of money
3. Present credit cues
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