Open Access

Johanna Salome Friedrich

• This study examines the generational differences in the perception of payment mode transparency and its impact on the pain of paying, particularly comparing Generation Z with older cohorts. Using a mixed-method approach, including a simulated shopping task and a survey, the research tests the effect of different payment methods (cash and debit cards) on spending behaviour across three generations. Additionally, the survey measures anticipated pain of paying and payment mode transparency perception. The study hypothesizes that Generation Z perceives debit cards as more transparent than cash, in contrast to older generations, who are expected to view cash as more transparent. These contradictory perceptions could lead to differences in the pain of paying and thus spending behaviour between generations. The findings indicate a significant generational shift in transparency perception of the two payment modes in the predicted way. However, there was no significant relationship between the perceived transparency and the amount spent. While our results show significant generational differences in pain of paying and amount spent, payment mode did not have an influence on either of them. These findings challenge traditional economic assumptions about payment transparency and provide new insights into generational differences in spending behaviour.