Improving credit card repayments, one nudge at a time

Consumers frequently use digital platforms, like payment screens in mobile payment apps or websites, for convenience and speed. Through an examination of factors such as minimum required payment information, lifetime interest, and pre-set repayment options, we find that altering the decision-making environment on digital platforms can influence repayment behaviour. Specifically, while displaying minimum payment information tends to reduce the amount paid, providing details about the duration and total interest cost of debt mitigates this negative effect. Furthermore, offering preset options influences payment behaviour, with the average amount increasing with the average of the preset options shown. These insights contribute to a deeper understanding of how digital platforms can be leveraged to facilitate effective debt reduction strategies in contemporary financial landscapes, especially considering the relatively lower level of regulation on these platforms compared to traditional mediums such as monthly statements.