Every festive season, India lights up with discounts, cashback alerts, and “no-cost EMI” banners. From smartphones to SUVs, everything seems affordable — not because incomes have surged, but because credit has never been more frictionless. “Buy Now, Pay Later” (BNPL), zero-interest instalments, and instant personal loans have made indulgence feel virtuous.
In the 1970s, psychologist Walter Mischel’s Marshmallow Experiment tested children’s ability to delay gratification — eat one marshmallow now or wait 15 minutes for two. Decades later, those who waited tended to show greater academic and financial success. Half a century on, the same drama plays out daily on our phones.
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Each “Pay Later” button is a digital marshmallow. Behavioural economists Drazen Prelec and George Loewenstein describe the pain of paying — the discomfort we feel when spending money.
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