The majority of people are making impulse purchases as a result...
New British research suggests the shift to a cashless society is causing consumers to overspend.
According to credit check firm ClearScore, more than half of people (59%) feel that not having to hand over physical cash at the till has led to us spending more.
Some 72% of those surveyed said that digital payment methods such as Apple Pay and contactless credit cards have encouraged them to make more impulse purchases.
Two out of five shoppers admitted that the ease of digital payment methods has caused them to lose track of their spending, with almost one quarter (24%) having missed a bill and 15% having defaulted on a loan, damaging their credit score as a result.
Over half (57%) reached a point where they had to cut back their monthly spending, while one in 10 turned to a payday lender.
The extent to which technology has transformed the way we shop was also highlighted. In the UK, 52% of all purchases are now being made without hard cash. Young shoppers in particular have embraced the cashless society, with 61% of people agreeing that the new technology is positive, rising to 89% among millennials.
Those between 18 and 34 are more than twice as older generations to use mobile payments.
ClearSearch CEO Justin Basini said:
“Without the feeling of handing over cash – the clink of coins and the rustle of bank notes – money becomes even more abstract. We can easily lose track of how much we’re spending.
"It means its even more important than ever to stay on top of your financial information by checking your bank balance and debt levels regularly and nurturing your credit score.”