By Daniel Hunter
Warning signs about the economy in the Autumn Statement mean consumer spending looks set to be equally prudent this Christmas, according to digital payments experts Skrill.
Forty-percent of UK consumers fully intend to set a strict budget and stick to it, with only 4% thinking they will overspend by amounts of up to £200.
The majority of UK shoppers (59%) believe if they used a prepaid card with a set limit to spend on it, they would minimise the risk of overspending and allow them to stick to their budgets. However, when shoppers do overspend, the most likely way for them to do so remains spending via a credit card. A third (36%) admitted they are most likely to overspend using a credit card to pay for Christmas gifts online.
Recent trends towards online shopping have continued with 90% of Brits planning to buy at least one gift online this Christmas as they hunt for the best bargains. A quarter (26%) will make between one and five purchases online with a further third (33%) buying between six to ten presents online.
With a clear desire to minimise the risk of overspending this year, UK spenders are looking to new payment technologies to help them stick to their budgets. Nearly one in ten (8%) have used digital wallets to buy gifts in the past and this year more than one in three (38%) are looking to use NFC payment methods.
Spiros Theodossiou, VP Product Strategy at Skrill said: “Given the current economic climate, consumers are acutely aware of overspending this Christmas. Our study shows that UK consumers are willing to consider new payment options to help them better manage their finances."
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