The Notification Economy: When Our Phones Dictate Our Spending

Have you ever opened your phone simply to reply to a message, only to find minutes later that you have bought something that was never on your list of needs? We may consider this a spontaneous decision. In fact, that decision may have been “prepared” by the dozens of notifications that appear on our phone screens every day.

Today, we live amid a digital economy that not only offers convenience but also continuously shapes the way we make decisions. Limited-time discounts, free shipping, flash sales, and alerts such as “only two products left” are more than mere information. All of these are designed to push us to buy immediately, before we have a chance to think twice.

Data from the Indonesian Internet Service Providers Association (APJII) shows that internet penetration in Indonesia has reached more than 79 per cent of the population. Meanwhile, the DataReportal 2025 report records that Indonesians spend an average of more than seven hours a day using the internet. This extended screen time means people are increasingly exposed to digital promotions delivered through shopping apps, social media, and messaging services.

This phenomenon relates to the concept of behavioural economics, namely how a person’s economic decisions are not always made rationally. Numerous studies show that humans tend to be influenced by the fear of missing out (FOMO), scarcity effects, and the pursuit of instant gratification. It is hardly surprising that a notification reading “promotion ends in one hour” is often more effective than the budget plan we drew up ourselves.

The problem does not lie with technology or shopping apps themselves. Digital platforms have opened up major opportunities for businesses and made it easier for people to obtain goods and services. The issue arises when notifications begin turning needs into wants, and those wants into unconscious habits of overconsumption.

This condition is also reflected in the rising use of digital payment services and electronic commerce transactions in Indonesia. According to Bank Indonesia, the value of electronic money and digital payment transactions has continued to grow in recent years. For its part, Statistics Indonesia (BPS) has also recorded increased trading activity on digital platforms as part of the national economic transformation. This growth is good news for the digital economy, but it also serves as a reminder that public financial literacy must advance in step with technological progress.

In an era when every app competes for users’ attention, the most valuable skill is no longer simply earning money, but controlling how we spend it. For the greatest threat to personal finances today does not always come from large expenditures, but from small decisions made repeatedly without our realising it.

Perhaps it is time we asked not only, “What do I want to buy today?” but also, “Do I truly need this item, or am I merely responding to a notification?”