["International Journal of Finance &Economics, Volume 31, Issue 2, Page 2417-2430, April 2026. ", "\nABSTRACT\nWe survey 1208 payers through online questionnaires to examine the impact of mental accounting on consumers' vulnerability to payment biases in Pakistan. Using a mental accounting perspective, we evaluate the direct effects of current and future payment methods on consumer spending behaviour. Furthermore, it scrutinises the interaction role of Digital Financial Literacy (DFL) on the link between current payment methods and spending behaviour and government support between future payment methods and spending behaviour. Survey‐based questionnaires were used to gather data through purposive sampling. Smart‐PLS 4 results show that current and future payment methods significantly affect spending behaviour, with digital payments having a more pronounced impact than cash payments. Our findings also disclose that DFL profoundly moderates the relationship, while government support moderates only between future digital payments and spending behaviour. This study presents a comprehensive model that serves as a guideline for policymakers aiming to promote a cashless society and contributes to a better understanding of prudent spending behaviour.\n"]