A recent YouGov Reports publication on ‘Credit and Debit Cards’ reveals several negative connotations that consumers have regarding credit cards. The study also suggests that there is resistance to acquire contactless payment cards in the future.
In terms of the negative aspects of credit cards, there is a perception of cost and debt. Among owners of at least one financial product, over six in ten (63%) say credit cards can become very expensive if you don’t repay quickly. Over half (54%) think they can lead the financially naïve or disorganised into debt. 52% say they can lead to a more serious consequence – becoming trapped in debt.
So why do we see a dependence on credit cards? Four in ten (40%) credit card holders use their cards to purchase a particular item or ‘big ticket’. A quarter (25%) use one for day-to-day household spending. And 22% use it for flexibility when juggling other commitments.
There seems to be a hope among credit card users to reduce their use in future (how realistic this hope may be is debatable). Almost a quarter (23%) of credit card holders plan to reduce their spend over the next two years. 13% want to spend more on their debit and credit card and 12% want to look for a card with better rewards.
Recent developments have seen companies such as TFL offering commuters the opportunity to pay via contactless card. The report shows a certain amount of resistance to this method. Over half (53%) have never used a contactless debit or credit card, whilst 42% of non-owners say that they would definitely not be interested in contactless payments.
James McCoy, Research Director, YouGov Reports, commented on the findings: ‘While credit cards are ubiquitous in society today, it may be a surprise to see the level of negative connotations associated with them. Providers will therefore need to work hard to assuage the perceived risks and pitfalls of regular usage. As Christmas shopping puts more demands on consumers and their credit cards, the spectre of debt looms very closely too.
“As far as contactless cards go, it is clear that some consumers still need to be convinced as to the benefits of them. As many payment methods on crucial public services move towards this method, it is also very important that the public is informed fully about contactless payment and the logistics behind it.’’