LUND, Sweden: The act of handing over hard-earned cash has long been associated with pain. And historically, research has also found that consumers tended to spend less using cash rather than a payment card. In a study from the early 2000s where consumers were observed using either cash or a pre-paid card, it was shown that those with cash spent less money. This was corroborated in the same study by investigating consumer receipts from a grocery store. Evidence also suggests that willingness to pay (the maximum amount a consumer is prepared to spend on a product or service) has traditionally been higher for debit cards than cash. The “pain of payment effect” - the psychological discomfort of parting with money in the moment of paying - when associated with cash has been attributed to its physical and tangible characteristics in comparison to credit card payment. It has even been suggested that when payment and consumption happen within a short space of time and paying with cash is more material and visual, the pain of paying clouds the enjoyment of consumption. In fact, the use of physical cash has been shown to activate the pain centre in the brain. However, some researchers are more sceptical and instead put the perception of pain down to a lack of reward response - where the brain associates an action with feelings of pleasure. This response is activated by credit cards far more than by cash. Mobile payment (for example, with a phone or smartwatch) has also been found to affect spending in a similar way to using credit or debit cards. That is, spending tended to be higher when using mobile payments than cash. CONSUMERS MORE USED TO NON-CASH PAYMENT However, later studies have found this effect between cards or mobile payment and cash becoming weaker with time, suggesting that this may be because consumers have become more used to non-cash payment methods. Another reason may be the notifications about spending and account balances that flash up on a consumer’s watch or phone after payment. One study found that payment notifications can evoke pain of payment in the way that cash has been seen to. That is to say, consumers now tend to spend less when they get digital payment notifications flashing up an amount on their phone. My own research from Sweden backs up the findings that the pain of paying with cash compared to digital methods has reversed over the years. Cash use is falling in many countries, and Sweden is a particularly cashless society, with fewer and fewer stores now accepting notes and coins. In my study, young consumers between the ages of 20 and 26 kept a diary of their payments. Many revealed that when they paid with cash, they didn’t see it as affecting their overall funds since it didn’t show up on their transaction history or account activity. Also, no alert flashed up on their phone. But when paying with mobile apps, the account activity was more visible and showed up instantly on screen, allowing consumers to keep track of their purchases and account balance. Some of the participants in the study said things like: “I seldom use cash, only if I receive it as a gift. Then I try to get rid of it as soon as possible.” “I have cash in my wallet, but I never consider using it.” “I’m so bad at keeping track of cash, it’s like free money to me because it doesn’t show up on my bank account.” DIGITAL MONEY PERCEIVED TO BE MORE REAL THAN CASH Comments like these indicate that for cash to be perceived as real money to a younger demographic, it may need to be transferred into a cashless payment method. This suggests that pain of payment affects the generations differently, depending on habits and technology. Since previous research has shown that spending levels tend to be higher with cashless methods, it may be that store managers could think about promoting cashless payment. But the flipside of this might be that not accepting notes and coins means they miss out on sales when young consumers want to “get rid” of their cash. For now, cash in an envelope is still holding out as a Christmas gift tradition to young people from older friends or relatives. But perhaps a digital money gift might be more appropriate if the giver wants it to be experienced as “real” money. Who knows, this might even lead to a more carefully planned purchase of something that will be cherished - rather than an impulse buy at the till. Carin Rehncrona is a PhD candidate at the Department of Service Studies, Lund University. This commentary first appeared on The Conversation.

Grand finale for MES Golden Run

Matvei Michkov doesn't turn 20 for a couple of weeks, but he continues to play well above his years for the Philadelphia Flyers. Fresh off his second overtime goal in the last five games, Michkov leads the Flyers into Monday's home game against the Vegas Golden Knights. Philadelphia's first-round pick in 2023, Michkov joined the NHL prior to this season and has made a major impact on the young Flyers. He ranks second on the squad in goals (seven) and assists (nine) and has been earning more playing time under coach John Tortorella. Michkov scored in overtime Nov. 14 against the Ottawa Senators and turned the trick again Saturday, netting the decisive tally in a 3-2 win over the Chicago Blackhawks. "There's not many moments you're going to get," Michkov said through an interpreter. "When you get the moment, you have to be cold-blooded and finish it." Saturday's OT goal was particularly notable as it capped a late-game comeback for the Flyers, who trailed 2-0 in the third period. Sean Couturier and Noah Cates scored down the stretch to set the stage for Michkov's goal off a perfect feed from Travis Konecny. "We kept our patience," Tortorella said. "I don't think we played poorly by any means, but when we're down 2-0, we had chances, we couldn't finish. ... I appreciate how the guys just stayed together, kept on playing." Philadelphia has spent the last month digging out of a 1-5-1 hole to begin the season. The Flyers can get back to .500 with a win Monday in the finale of their five-game homestand. "We got frustrated at times, but we stuck together and stuck to the same style of play," Couturier said. "We came back, showed some character in the third and capitalized on our chances and found a way to get the two points." Vegas earned two points in its most recent contest, as well, riding a five-goal second period to a 6-2 victory over the Montreal Canadiens. Ivan Barbashev and Jack Eichel each registered a goal and two assists for the Knights, who have been consistently up-and-down over the last 10 games. During that stretch, the team has won two in a row, lost two consecutive games, then won two straight before losing two straight and then winning two in a row again. That inconsistency was on display against the Canadiens, as the Knights dominated the second period before allowing two goals in a third period that disappointed coach Bruce Cassidy. "Let's face it, in the third period we got off our game, they pushed us," Cassidy said. "I know it's late, but at the end of the day, good on (the Canadiens) to make a play." Still, Vegas finished with its highest goal total since scoring seven times Oct. 26 against the San Jose Sharks. "It's just our style of play," forward Keegan Kolesar said. "We wear teams down. We were able to capitalize on a couple of mistakes they made and we sent our nose to the net. ... That results in some goals for us." The Flyers and Knights have split 12 all-time meetings. The teams will meet again in Las Vegas on Jan. 2. --Field Level Media