Researchers from the University of Adelaide and the University of Melbourne in Australia have concluded that digital payments are driving people to spend more as there is no physical exchange involved.
The researchers conducted the study by doing a meta-analysis of 71 previously published papers and by observing the spending behaviour of people across 17 nations.
The experts concluded that the convenience in spending has made people more prone to spend on luxurious items that are most of the time unnecessary.
They advised people to carry cash as it helps as a self-control mechanism.
The scientists revealed that the difference in spending was "small, but significant". People with access to digital payments were more likely to spend money on luxury clothing and jewelry.
They also observed that digital payments did not affect tips or donations. People spend money on donations as much as they used to do with cash.