Over 50s are leading the way when it comes to embracing modern payment methods, according to the latest figures.
Research conducted by Saga Personal Finance shows that while 60% of over 50s regularly pay by credit card, this figure is a lower 38% for 18-49 year olds.
Over 50s are also waving goodbye to their chequebooks, with just 5% using cheques to pay for their purchases compared to an average of 10% for 18-49 year olds. Continuing their walk into the payment future, 58% of over 50s also utilise online payments/bank transfers to complete their transactions.
For the 2,000 UK adults questioned as part of the research, debit cards (35%) emerged as the most popular payment method overall.
Commenting on the research findings, Andrew Strong, chief executive of Saga Personal Finance, commented: “Secure and efficient methods of payment underpin the British economy, as do the over 50s whose spending does so much to keep businesses afloat and people in jobs.”
Value of the ‘grey pound’ increasing
Research released by Saga earlier this year revealed that the value of the ‘grey pound’ was continuing to increase.
It showed that while consumer spending among the over 50s leapt by an average of 4.4% each year between 2003 and 2012, this figure was a lower 1.2% among younger generations.
Commenting on the figures earlier this year, Saga’s strategy director Tim Pethick said that the over 50s are becoming increasingly more active and therefore are exposing themselves to more spending opportunities. He said: “People are living longer and have more active social and economic lives, which is changing how we think about ‘retirement’.
“As a consequence the over 50s have become, through their hard work, big earners and even bigger spenders – today they account for some 76 per cent of the UK’s financial wealth. Their confidence in the future has made them willing to lift their spending faster than other age groups and, in doing so they have helped drive the UK out of recession.”
A fast and efficient payment method
Prepaid cards offer a fast and efficient payment method for those making frequent or occasional purchases. Prepaid cards can be topped up online 24 hours a day, 7 days a week meaning you will always have the funds you need.
Prepaid cards also give you the flexibility to shop online, in-store and over the phone. As well as being accepted at over 30 million merchants worldwide that accept Mastercard/VISA, you can also use your prepaid card to make withdrawals at more than 2 million ATMs.