Skrill Ltd

As the UK economy stalls, 40% of British shoppers have created strict budgets for Christmas

Warning signs about the economy in the Autumn Statement mean consumer spending looks set to be equally prudent this Christmas. 40% of UK consumers fully intend to set a strict budget and stick to it, with only 4% thinking they will overspend by amoun

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 over 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.

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. New technology such as prepaid cards and digital wallets are an ideal way to curb expenditure, as you can set a limit and then cut your cloth accordingly. Spending with new technology like this can help people to enjoy their Christmas and a debt-free January too.

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.

In contrast to the caution being displayed by the UK public, German shoppers are feeling far more buoyant with a fifth fully prepared to go as much as €200 over budget.

Spiros Theodossiou, VP Product Strategy at Skrill commented: “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. New technology such as prepaid cards and digital wallets are an ideal way to curb expenditure, as you can set a limit and then cut your cloth accordingly. Spending with new technology like this can help people to enjoy their Christmas and a debt-free January too.”

About the research

The survey was conducted by market research company OnePoll in accordance with the Market Research Society code of conduct in November 2014 with 2,000 UK adults. All participants in the survey are double opted in to take part in research. They are paid per survey (the payment differing depending on the length/time taken). All our surveys are overseen by members of the research team who edit the questions to ensure they are MRS compliant/not leading/biased in any way, and that respondents have the freedom to ‘opt-out’ of questions by filling in an alternative opinion in ‘Other please state’ or by ticking ‘N/A’ or an equivalent.

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