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People judge your status by how you pay- consumer using a mobile payment app was rated as higher status when paying for an economy hotel; but when the hotel was described as a luxury property, the consumer paying in cash received a slight status edge

July 9, 2025 //  by Finnovate

A new study from Cornell University has revealed that consumers using mobile payments are perceived as having higher status than those using traditional methods such as credit cards or cash. The research also uncovers a shift in how the use of cash is viewed in social perception. Even as mobile apps become more common, the research shows that users of mobile payment methods are still misperceived as early adopters. Early adopters have historically been associated with affluence, and this mistaken belief leads observers to perceive mobile payment users as wealthier than cash users, granting them higher status in everyday transactions. However, the research also shows that this status signal is context dependent. In another study, participants evaluated a consumer paying for a hotel stay with either cash or a mobile app. The consumer using a mobile payment app was rated as higher status when paying for an economy hotel. But when the hotel was described as a luxury property, the consumer paying in cash received a slight status edge. According to the research, when the purchase itself (such as a luxury hotel stay) already conveys wealth, the mode of payment becomes less critical. In fact, using cash in such contexts may even enhance the perception of discretionary wealth. The overarching takeaway from this research is that in a world where every interaction — no matter how trivial — can serve as a status signal, something as mundane as the method of payment carries social weight. Mobile payments are not just reshaping how transactions happen; they are also transforming how individuals are perceived.

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Category: Networks Processors & PSPs, Innovation Topics

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