This article presented an empirically tested model explaining, and extending on previous research, why and
how payment mode influences spending behaviour. The underlying factor for increased spending is broadly attributed
to the nature and form of payment mode that influences our emotions and cognitions and, consequently, behaviour.
We investigated the role of social gratification and mental accounting dimensions and their relationships between
emotions to payment modes and spending behaviour. Our focus in this investigation has been on the grocery spending
context, since these behaviours are repeated and require formation of habit. We find support for our assumption that
the sense of ownership associated to payment mode moderates the strength of the mediated relationship between
emotions with cash-based payment mode and overall dollar spending in a single grocery shopping episode, via
mediator social gratification and mental accounting, such that the mediated relationship will be weaker under the
influence of ownership associated with cash-based payment mode.