Exploring the Use of Cashless Payments in Personal Financial Management for Generation Z

Martin Laoli; Krisnawati Setyaningrum Nugraheni

doi:10.55606/jubima.v4i3.4546

Authors

Martin Laoli Indonesian College of Tourism Economics (STIEPARI) Semarang
Krisnawati Setyaningrum Nugraheni Indonesian College of Tourism Economics (STIEPARI) Semarang

DOI:

https://doi.org/10.55606/jubima.v4i3.4546

Keywords:

cashless payment, financial behavior, Generation Z, mental accounting, pain of paying

Abstract

This study explores how Generation Z in Semarang, Indonesia, navigates the psychological dynamics of cashless payment methods in their personal financial management. Employing a qualitative case study design with a phenomenological orientation, this study conducted semi-structured interviews with ten informants, six of whom were purposively selected for in-depth analysis, representing students, employees, and informal workers. The data were analyzed thematically following Braun and Clarke's (2006) approach and interpreted through the lenses of the mental accounting and pain of paying theories. Findings reveal three themes: (1) digital payments reduce the psychological salience of spending, making money feel like numbers on a screen; (2) informants develop independent account segregation as an informal mental accounting strategy to maintain control; and (3) most informants experience episodic loss of spending control, particularly through PayLater features, followed by corrective self-regulation. The study extends payment psychology literature into an Indonesian urban context and offers practical implications for fintech interface design, regulatory disclosure of BNPL risk, and youth financial literacy programs.

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