{
  "id": 18607342,
  "title": "Guarding Against Impulsive Spending",
  "url": "https://urgent.news/2026/11/07/guarding-against-impulsive-spending",
  "topic": "world",
  "section": "World",
  "published": "2026-11-07T00:42:58.000Z",
  "source": {
    "name": "This Day",
    "slug": "this-day",
    "url": "https://www.thisdaylive.com/2026/11/07/guarding-against-impulsive-spending/"
  },
  "original_language": "en",
  "account": "As the Nigerian financial landscape embraces contactless payment, commonly referred to as 'tap-to-pay', consumers must remain vigilant against the temptation of impulsive spending that this technology could fuel. Although contactless payment is not yet widespread in Nigeria, experts predict a high adoption rate due to the country's high transaction volume and strong financial inclusion. As of 2025, the Central Bank of Nigeria reports over 12 million contactless cashless cards in circulation. Further advancements are underway, including the recently unveiled Payments System Vision 2028, which aims for broader deployment of contactless technologies. Interswitch and its banking partners have recently intensified their efforts in this direction, expanding supporting infrastructure.\n\nThe convenience of contactless payments is a significant advantage, but it also presents a considerable risk to household finances. This ease of use could potentially lead to overspending, thereby undermining the psychological barriers that help consumers manage their spending. Early adopters in other countries have experienced this phenomenon, where the widespread use of contactless payments has been linked to increased overspending. Financial researchers, Marie-Claire Broekhoff and Carin van der Cruijsen, found in their study titled \"Paying in a Blink of an Eye: It Hurts Less, but You Spend More,\" that electronic payments, including contactless ones, are perceived as less painful than cash payments. This perception may encourage consumers to spend more without realizing the financial implications.\n\nConcerns also exist about the potential loss of track of spending, a risk associated with all digital payment methods, but amplified by the speed and convenience of contactless transactions. A 2018 UK survey commissioned by GoCompare revealed that 17% of contactless payment users confessed to losing track of their spending, while 13% were worried that this method encouraged them to spend beyond their means. Economists argue that cash payments often trigger a sense of awareness about the amount being spent, while tapping a phone may feel less noticeable. This lack of perceived cost can lead consumers to make purchases they do not necessarily need, ultimately impacting their budgets.\n\nFinancial analyst, Dr. Titi Fowokan, emphasizes this risk, particularly for individuals with a luxurious lifestyle and poor self-control. \"Their spending pattern may increase due to a lack of self-control. With the current state of the economy, everyone needs to adjust their lifestyle, and this requires self-determination,\" she notes. In Nigeria, the Central Bank has implemented daily contactless payment limits, set at N15,000 per transaction and N50,000 cumulatively, to protect users from fraud. These limits can also serve as a buffer against impulse spending. Consumers are advised to remain disciplined and avoid being swayed by the ease and convenience offered by this innovation. Constantly monitoring account balances, setting weekly spending limits, and adhering to the principle of living within one's means are essential safeguards against impulsive spending.",
  "summary": "Omolabake Fasogbon As the push for ‘tap-to-pay’, also known as contactless payment intensifies in the Nigerian financial landscape, consumers, increasingly, must guard against impulsive spending which this innovation will likely",
  "key_points": [
    "Contactless payments in Nigeria projected to reach 12 million by 2025.",
    "Interswitch expanding contactless infrastructure with banking partners.",
    "Daily contactless limits set at N15,000 and N50,000 cumulative to curb overspending."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}