Savvy shoppers use pocket money to prevent over-spending

This article is brought to you by Retail Technology Review: Savvy shoppers use pocket money to prevent over-spending.

Two-thirds of consumers would prefer to use plastic or any method other than cash to pay for goods, however over the Christmas break four out of five planned to pay for goods in cash to help limit spending as the credit crunch hits the pocket.  Independent research of 1,000 British consumers, commissioned by Ingenico, a leading provider of payment solutions, has revealed that despite belt-tightening, consumers have a thirst for new ways of paying.

The research, conducted in December 2008, looked at consumer payment trends and inclinations by surveying 1,000 consumers.  Regarding Christmas, it has shown that consumers were aiming to spend more wisely either limiting themselves with cash pocket money, or by looking to discount vouchers and other reward schemes to help save money and maximise their spending power.

Consumers are reacting to the UK economic downturn by tightening their belts, as 39 percent of respondents intended to reduce their festive spending, preferring instead to wait for the increased chance of finding bargains in the January sales, said Gregor Rankin, marketing manager at Ingenico.  This survey is part of wider reaching research into how consumer attitudes and behaviours relating to payment are changing.  Due to be launched in early February, the overall results indicate that UK shoppers are ready for the next phase in the evolution of payment contactless and mobile phones.

38 percent of respondents want more electronic payment options to forego the need to carry cash, while 33 percent prefer to pay with cards than dig change out of their pockets.  During the Christmas period, however, goods were most likely to be paid for using cash (chosen by 83 percent of consumers when asked to rate preferred methods of payment).  76 percent of consumers said that they were most likely to use debit cards for seasonal spending, compared to just 58 percent for credit cards.  However, most shoppers would prefer to use credit cards, but may be put off from doing so because of the credit crunch.

This research shows that over the festive season, consumers were being smarter about how they were shopping, said Gregor Rankin, marketing manager at Ingenico.  Budgets are tighter than ever, and consumers are trying to spend within their means and shop smarter by using discount vouchers and cash, therefore avoiding the spending hangover associated with the holiday season.  As the credit crunch continues, I expect consumers to continue to shop smartly but to look for more convenient ways to pay that will make their shopping experience quicker, less stressful and more therefore more enjoyable.