This is why your friend ‘forgets’ to pay you back

We have all been there, you are out with friends, the bill comes, a short conversation is had around how to split it. You have card, Ben has cash, Jade is complaining she is poor. So, you become the cash cow, cover the cost and ask everyone else to pay you back. The next morning you feel a little uneasy after seeing such a big hole in your bank account so you send out your bank details and spend the next few days/weeks hassling everyone for repayment.

It’s safe to say everyone has been on either side of this equation, so why, even when we know the pain of being the cash cow, do we constantly put off paying our generous friends back? Well, the answer is a combination of; because you are human, and because you are a human that uses technology.

As humans, we see value in things, and most of the time are willing to hand over money for things we value. However, in the situation above we begin to forget the value of something as time passes. Sorry Cash Cow but the owing party becomes more averse to repaying their debt as the utility of the transaction declines, simply they can no longer associate the cost of a purchase to the tangible benefit they received weeks or months earlier. As time elapses so does the likelihood of recovering the funds.

Couple this with the fact that we can now hide awkward conversations about recovering money behind technology. Send your friend a text message to pay you back and they will probably reply with “no worries doing it now” (until they get distracted with Instagram before opening their banking app), or “will do, btw how did you go in the economics test?”, or “🍆”. There are simply too many ways to ignore a message about money when being reminded via technology. As we can’t see our friend we can easily distract ourselves and push aside those feelings of guilt for being ‘that guy’ that never pays their share.

To put an end to this we created DiviPay. A mobile wallet that allows groups to split the cost of any transaction. We issue groups with their own unique virtual card that can be used to make split purchases both online and instore. The ability to pay as a group means no one has to cover the cost and hassle their friends for repayment, rather the payment is split between the group members in real time. Each person in the group can simply and easily pay their share of the total bill eliminating the need for an IOU, ATM or bank transfer. Everyone walks away knowing they paid their fair share and not feeling the pressure of owing money, or worst, having to try and recover it.