https://dinastipub.
org/DIJEFA Vol.
No.
4, 2025
DOI: https://doi.
org/10.
38035/dijefa.
https://creativecommons.
org/licenses/by/4.
The Cashless Payment Paradox in Sustainable Consumption Trends: Between Efficiency and Overconsumption Fitriyani Fitriyani1*.
Yogi Hady Afrizal2 Institut Teknologi dan Bisnis Kalla.
Makassar.
Indonesia, fitriya@kallainstitute.
Institut Teknologi dan Bisnis Kalla.
Makassar.
Indonesia, yogi@kallainstitute.
Corresponding Author: fitriya@kallainstitute.
Abstract: This study aims to examine the contradictory nature between the benefits and risks arising from the use of cashless payment systems in relation to sustainable consumption patterns in society.
Employing a qualitative approach, this research seeks to explore in depth the contradictory aspects between the convenience offered by cashless payments and the principles of sustainable consumption, which emphasize environmental preservation.
The research is centered in the city of Makassar.
The findings reveal that cashless payment systems function as a double-edged sword: on one hand, they provide efficiency and ease in on the other hand, they carry significant, often hidden, risks of promoting overconsumption, especially in the absence of strong self-control and adequate systemic interventions in the use of such digital payment technologies.
The implications of this research are expected to offer valuable insights for policymakers, business practitioners, and consumers on how to harness digital payment technologies to support more sustainable consumption patterns, while mitigating the risks of overconsumption that may be detrimental to both individuals and the environment.
Keywords: Consumer behavior.
Cashless payment.
Sustainable consumption.
Green economy.
Fintech.
INTRODUCTION
Consumer transaction habits have shifted alongside the rapid advancement of internet The transition from cash to cashless payments has become widespread, driven by both consumers and producers, fostering the emergence of a cashless society (Afrizal et al.
Cashless payment methods have begun to reshape the landscape of financial transactions in Indonesia's digital era, offering unprecedented convenience and efficiency.
These methodsAiincluding credit cards, e-wallets, and online bank transfersAihave accelerated purchasing processes and eliminated physical constraints in conducting transactions (Kashyap et al.
, 2.
However, behind the convenience of cashless payments lies a trap that fosters consumerist behavior.
Studies have shown that cashless payments can drive impulsive buying, 3032 | P a g e https://dinastipub.
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particularly on e-commerce platforms due to the ease they offer (Fitriyani & Afrizal, 2.
Consumers increasingly prefer cashless payment methods due to their practicality, efficiency, financial transparency, and the incentives they provide (Afrizal et al.
, 2.
Concurrently, a growing movement toward sustainable consumption has gained momentum, supported by IndonesiaAos national development agenda through the Asta Cita program outlined in the governmentAos 2025 vision and mission.
This aligns with the green economy pillar, emphasizing economic development that is conscious and responsible toward environmental preservation (Wijayanti & Sari, 2.
Consumers, particularly among the younger generations, are increasingly aware of the environmental impact of their shopping habits and are striving to make more responsible choices (Agustina et al.
, 2.
Figure 1.
Reasons for Using Environmentally Friendly Products Source: (Snapcart.
According to Indonesian ConsumersAo Interest Toward Sustainable Products 2024 report, 38% of Indonesian consumers have become aware of and choose to use environmentally friendly and sustainable products, primarily to protect the environment and the planet.
E-commerce platforms and payment service providers now face the challenge of balancing innovation in payment convenience with the promotion of more environmentally sustainable consumption practices.
This aligns with previous research that emphasizes the importance of offering environmentally friendly products or services (Syarif & Paramita.
It also suggests integrating information about the environmental impact of products into the purchasing process or providing incentives for eco-friendly choices.
Previous studies examining the relationship between cashless payment usage and sustainable consumption trends remain limited.
Most research has focused on the impact of cashless payments on consumer spending levels (Schomburgk et al.
, 2.
, the influence of cashless payments on IndonesiaAos economic growth (Christianti, 2.
, the effect of electronic payments on consumer purchasing habits (Ghaith & Ghaith, 2.
, and the role of digital payments in shaping impulsive buying behaviors in e-commerce (Fitriyani & Afrizal, 2.
In contrast, studies on sustainable consumption often center on factors influencing consumersAo green purchasing intentions (Syarif & Paramita, 2.
, pathways to sustainable consumption among Gen Z and Millennials in IndonesiaAihighlighting the role of health awareness, lifestyle, and trust (Agustina et al.
, 2.
, and the role of retailers in addressing consumersAo psychological barriers to promote sustainable practices (Saha et al.
, 2.
This research offers a new perspective by exploring in greater depth the paradoxical relationship between cashless payment use and sustainable consumption patterns.
It aims to examine the 3033 | P a g e https://dinastipub.
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balance between benefits and risks while analyzing how digital payment technologies can be leveraged to support more sustainable lifestyles.
The paradox between the benefits and risks of cashless payments in shaping sustainable consumption patterns raises a critical question: do cashless payments help consumers spend more efficiently or, conversely, encourage overconsumption? This research seeks to explore how consumers can better understand the impacts of their purchasing decisions in this digital METHOD To address the paradoxical nature of the benefits and risks posed by cashless payments on sustainable consumption patterns, this study adopts a qualitative research method with a phenomenological approach.
This approach allows researchers to explore, in depth, the perspectives, experiences, and interpretations of research subjects using techniques such as indepth interviews, participant observation, and document analysis.
The phenomenological approach is particularly effective in uncovering the complex meanings behind social phenomena and understanding the contextual background of individual or community responses to specific issues (McCusker & Gunaydin, 2.
This study focuses on consumers residing in Makassar, selected using purposive The key criteria for inclusion are: consumers who have lived in the research location for at least one year, have actively used cashless payment methods in the last three months, and demonstrate awareness of and a commitment to environmental preservation.
Data collection involved conducting in-depth interviews with selected informants, along with observation, note-taking, and documentation.
To ensure data validity, the study employed triangulation techniques by comparing findings from multiple sources, including interview data, observational notes, and relevant documents (Lexy, 2.
Source triangulation was used to cross-verify data from different informants, enhancing the accuracy and consistency of findings (Alfansyur & Mariayani, 2.
No.
Initial Rez Lil Yan Yag Fit Table 1.
List of Informan Profession Cashless usage period Businessman 4 years Civil servant 5 years Lecturer 6 years Student 2 years Employee 3 years Source: Research data Informant Type Key Key Key Key Key This study employed the interactive analysis model developed by Miles and Huberman, allowing real-time data analysis.
The data analysis process consists of several stages: data collection, data reduction, data display, verification, and conclusion drawing.
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Pengumpulan Data Penyajian Data Redaksi Data Penarikan /Verifikasi Source: (Miles dan Huberman.
Figure 2.
Data Analysis Method Flowchart During the data collection phase, interviews were conducted with purposively selected In the reduction phase, raw data were condensed by filtering relevant and significant information and structuring it into a more coherent form.
Data display was done systematically to facilitate analysis and conclusion drawing.
Data verification involved assessing meanings, patterns, regularities, and relationships between variables to ensure the validity of findings.
Conclusions were drawn in the form of descriptive narratives, causal or interactive relationships, hypothesis formulation, or theory development (B.
Matthew & Michael, 1.
RESULTS AND DISCUSSION
The development of cashless payment methods has significantly transformed the landscape of digital economic transactions, providing widely acknowledged convenience and However, behind this ease lies a contradictory potential that raises concerns regarding increasing consumerist behavior and weakening the spirit of sustainable Performance Expectancy dan Digital Consumption Behavior From the performance expectancy perspective, most informants confirmed that cashless payment methods offer convenience and speed in transactions.
This reflects high performance expectations, as indicated by statements emphasizing ease, such as "faster and easier" and "not too complicated.
" The ability to make transactions without being physically tied to cash or wallets becomes an appealing feature that facilitates transactions.
This aligns with the performance expectancy perspective, which posits that technology use will benefit consumers in carrying out specific activities (Venkatesh et al.
, 2.
However, these perceived benefits are not without risks.
The ease and smoothness of transactions can potentially reduce financial awareness and weaken spending control.
informant Yan admitted, using cashless payments made them feel Aumore wastefulAy and Auspending more,Ay indicating the "pain of paying" phenomenon where users feel regret after transacting with digital money (Reshadi & Fitzgerald, 2.
The intangible nature of digital money lowers psychological barriers to spending, leading to less conscious purchases and triggering impulsive, unplanned buying behavior (Faraz & Anjum, 2.
This paradox places consumers in a situation where transaction efficiency blurs financial efficiency.
This study categorizes consumer behavior in using cashless payments that significantly influence sustainable consumption into several clusters:
Table 2.
Consumer Behavior Clusters in Cashless Payment Usage and Its Impact on Sustainable Consumption Variabel Strict Discipline Controlled Digital Overspending Impulsivity 3035 | P a g e https://dinastipub.
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Feature Usage Manual budgeting, avoids PayLater Promo Response Rejects nonessential discounts Consistent in waste Environmental Awareness Control Mechanism Weekly transaction checks, uninstalls apps when triggered Tempted by flash sales Contradictory .
ses tumbler but buys noneco product.
Uninstall apps Monthly financial Source: Research data PayLater dependence, rarely checks Overspends due to FOMO Minimal environmental No control mechanism The table above shows consumer behavior clusters in the use of cashless payments in relation to sustainable consumption.
Most informants fall under digital overspending or controlled impulsivity, mainly driven by promotional stimuliAiespecially flash sale programsAiand FOMO .
ear of missing ou.
triggered by trends and ads on social media.
Only one informant demonstrated strict discipline, emphasizing the role of budget planning as a key variable in curbing consumerist behavior caused by digital payments (Purwaningtyas & Sari.
Informants with low self-control reported difficulty limiting expenses.
Informant Lel, for instance, had to delete specific apps to restrict herself.
Abundant discounts and promotions on digital platforms positively correlate with hedonic consumption, overriding rational considerations (Anggarwati et al.
, 2.
Conversely, informants like Rez showed that cashless payments could still support financial efficiency if coupled with financial literacy and budgeting discipline.
Meanwhile, awareness of sustainable consumption remains partial.
Some informants stated they began considering sustainability due to exposure from their work environment and social media educational content.
However, in practice, they are still easily swayed by promotional incentivesAisuch as informant Fit, who was influenced to purchase a tumbler due to workplace encouragement.
This indicates that performance expectancy focused solely on ease and speed is not yet balanced by the integration of sustainability values.
Without supportive interventions like eco-labeling or spending alerts, consumers remain vulnerable to consumption behaviors that contradict responsible consumption ideals.
Informant Yan stated.
Authere should be labels or promo programs on sustainable products to attract consumers,Ay reinforcing the idea that proper education and labeling can guide sustainable choices.
Apart from behavior, the availability of features in apps is another contributing factor.
Most informants expressed the need for daily spending limit alerts or excessive purchase Informants Yan and Lel suggested that Authere should be some kind of notificationAy or Aureminder features like an alarm in the app,Ay reflecting the necessity of systemic support to enable wiser financial decisions.
Apps with such control features would enhance performance perceptions among users concerned with financial management and The Journey of Cashless Payments Towards Sustainable Consumption In the context of sustainable consumption, awareness alone is insufficient.
Practical mechanisms and digital ecosystems must encourage actionable change.
Labeling environmentally friendly products, carbon footprint comparison features, or incentives for green purchases could become part of the solution supporting behavioral transformation.
Informant Lel acknowledged that Authere are no indicators for sustainable products,Ay limiting consumersAo ability to choose sustainable alternatives.
Without such tools, sustainable consumption will remain sporadic and easily overshadowed by tech-facilitated consumer 3036 | P a g e https://dinastipub.
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Environmental concerns are a key dimension of this study.
Cashless payments have the potential to reduce carbon emissions by up to 80% compared to cash-based transactions, which require printing, distribution, and physical storage (Chandra Agarwal et al.
, 2.
However, behaviors of informants like Lel.
Fit, and YagAiwho use sustainable products like tumblers to reduce waste yet are still lured by non-eco product promotionsAihighlight the inconsistency between intention and action in sustainable consumption.
In response, informant Lel proposed technology-based solutions such as an Eco-Mode feature, aligning with OECD recommendations for eco-labeling systems (Gruyre, 2.
At the policy level, tiered PayLater modelsAisuch as those applied by SingaporeAos Monetary AuthorityAican protect vulnerable consumers from sudden debt accumulation (SingaporeAos Buy Now.
Pay Later Regulatory Landscape, 2.
This is supported by Bank IndonesiaAos regulatory efforts aimed at curbing overconsumption risks, especially in the digital era (Erwin Haryono, 2.
Consumer-oriented regulations are essential to protect vulnerable groups with low financial control so that digital payment systems do not become consumption Hence, digital payment methods are a double-edged sword that consumers must approach cautiously in todayAos digital era.
On one hand, cashless payments offer high efficiency and meet consumers' performance expectations.
On the other, they carry significant hidden risks of overconsumption if not accompanied by strong self-control and systemic interventions.
The challenge lies in transforming expectations from a focus on speed and convenience to also include contributions toward a wiser and more sustainable lifestyle.
CONCLUSION
This study examines the paradox between the benefits and risks of using cashless payment methods in relation to sustainable consumption patterns, particularly regarding transaction efficiency and consumerist tendencies.
The findings indicate that cashless payments facilitate ease and speed in transactions, aligning with user performance expectations as outlined in the performance expectancy theory.
However, this convenience also lowers psychological barriers to spending .
he Aupain of payingA.
, thereby increasing impulsive purchase risks.
Features such as PayLater further reinforce these tendencies.
The negative impacts of cashless payments are largely influenced by the userAos self-control.
Consumers with strong financial literacy exhibit wiser and more sustainability-oriented consumption behavior, while others struggle to regulate their expenses due to the ease offered.
Sustainable consumption awareness has not yet become a dominant factor in shopping Although some informants expressed environmental concerns, decisions were still largely driven by promotional incentives and the ease of cashless payments.
This suggests that without self-control and supportive technology systems, cashless payment use may weaken responsible consumption practices.
The results underscore the importance of redesigning digital payment systems not only to focus on efficiency but also to support prudent financial management.
Integrating features such as spending alerts, daily transaction limits, and environmental product labeling are strategic measures.
Improving digital financial literacy, especially among younger demographics, is crucial to raise awareness of the consequences of impulsive, technology-mediated consumption.
Such education is also vital in fostering reflection on the social and ecological impacts of every digital transaction.
Future research should adopt a quantitative approach with a broader population scope to yield more representative insights.
Comparative analyses based on demographic variables and experimental studies on the effectiveness of digital control features are also recommended to 3037 | P a g e https://dinastipub.
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enrich understanding of the interplay between technology, self-regulation, and sustainable REFERENCES