Where did my money go? A practical investigation towards users’ overspending behavior on online payment solution.

Abstract: When entering the age of information technology, cash payments were slowly been replaced by other methods including credit cards and online payment applications. On one hand, it brings convenience, on the other hand, people potentially spend more money than before. Previous researchers suggest multiple ways to reduce the overspending behavior on credit card payments, but rarely have these methods been tested in an online payment solution context. This study adopted these methods and categorized them into two groups, visual cues, and financial management mechanics. These two groups of the solution then been translated and develop into three practical prototypes, two of each and one prototype having two groups combined. All prototypes are developed based on a commonly used online payment application named Swish in Sweden. These prototypes are later been tested by ten participants. The results show both groups of solutions have a positive influence to reduce users’ overspending behavior and having them combined provides further complement effects. The study provides empirical data and practical design implications in addressing the overspending issue of an online payment solution.