It may not come as a surprise to hear that paying via tap-and-go is the most popular method now, cash is no longer king in the world of payments.
Simplicity and ease of payments certainly has its benefits, however the research is also suggesting that this trend is disconnecting consumers from the value of money and driving risky spending habits – especially for those facing financial difficulties.
According to the research, those who are facing financial difficulty are more likely to overspend than those who aren’t.
There is also evidence from the study that those already struggling are more frequently using buy now pay later (BNPL) services. 29 per cent of those financially struggling or in serious difficulty are using BNPL services at least once a month.
Michael Lawrence, CEO of COBA said “Technologies such as digital payments services offer many benefits for customers, including a frictionless and convenient experience. However, as with any new technologies, understanding the impacts on consumer behaviour is essential to ensure consumers who are most vulnerable are supported.
“Customer-owned banks serve more than five million Australians and are committed to ensuring customers have access to services, products, and advice that have been built around a deeper understanding of nuanced vulnerabilities or financial challenges.
Heritage is committed to our customers and their financial health – particularly those who are vulnerable and in financial distress. If you are in need of support, chat to us online, contact us over the phone 24/7 or drop into your local branch.