Contactless credit cards ‘could lead to overspending’
Contactless debit and credit card technology could lead to consumers spending beyond their budgets, says one expert.
It was recently reported that contactless technology is to be rolled out in several postcodes across south and east London later this year.
However, David Kuo, head of personal finance at Fool.co.uk, has suggested that the ease of the technology might lead to customers spending more frivolously.
Mr Kuo said: “If contactless technology is driven solely by convenience then that would be one thing. But the technology is also likely to drive revenues, which may lead to higher spend per customer than if consumers stuck with cash.”
He continued that the technology is likely to lead to consumers spending money on items they do not need and cannot afford.
Mr Kuo hence urged customers to stick to their budgets ahead of the introduction of this “innovative technology”.
Consumers worried about the rate of spending on their credit cards may wish to take out a debt consolidation loan, which can reduce the amount of monthly repayments.
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