Nearly 1 in 5 young adults don't equate contactless payments with spending real money
Payments UK has said that just over one billion contactless transactions were completed in 2015. Matt Sanders, Gocompare.com's credit cards spokesperson, comments:
"New technology is changing the way we spend and manage our money with Payments UK predicting that by 2025 just a quarter of transactions will be settled with cash. But while new payment systems such as 'contactless' make spending easier and quicker, many people admit to losing track of their spending and lots of small payments can soon add-up to a sizeable bill.
"Worryingly, according to Gocompare.com's research*, 15% of users said that they were concerned that new digital payment systems encouraged them to spend more than they should and 7% don't connect their spending in this way with 'real money'.
"Perhaps unsurprisingly, 18 to 24 year olds, who've grown up in the internet age, are particularly switched on and less fazed by the new digital ways to spend money - finding them easier to use than cash or traditional bank cards. However, as an age group they are twice as likely** to not equate these payment methods with spending actual cash, and not recognising this link could lead to financial trouble."
Notes to editors:
*On 29 July 2015, Bilendi conducted an online survey among 2,001 randomly selected British adults who are Maximiles UK panelists. The margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.
** 18% compared to 7% average