Consumers spend more money via smartphone apps

New research from the Financial Services Compensation Scheme (FSCS) has found that a third of people said apps on their smartphones has seen them spending money much more regularly which is impacting on their finances.

Two thirds of those surveyed feel that the ease of spending on mobile apps means that they are spending more money than they would like and they are losing track of what they are spending. With one click shopping and simplified buying processes, it has never been easier to buy the items you want or need whenever you want.

Head of communications at FSCS, Mark Oakes, commented on the findings to say; “Being able to make purchases at the touch of a button removes the thinking time you would usually have if you were in a shop. It requires discipline to stay in control of your money, not only spending but also saving, but it’s worth doing. Setting aside just a little a month can add up to a big sum.”

The research highlighted the differences in the shopping habits of both genders too as women typically spent more a month, at £131, on food and shopping apps, whereas men spent £115 a month on average and were more likely to spend on gambling, travel, entertainment, music and socialising.

With debt levels currently rising in the UK and inflation hitting a record high, these figures are likely to become a worry for some experts. Although, most people using these apps have the money to cover their costs, fears will rise about those that keep spending without realising the implications on their finances.

A new survey from Nationwide suggests that voice and gesture technology, which is likely to be introduced soon, will transform the way that we pay for goods and services online. As people are becoming more and more comfortable paying with biometrics, there is a demand for the next stage in convenience.

Dr Pearson, who conducted the survey, said that the new technology should allow; “Gesturing towards someone and saying: ‘Here is £13.46’ is quite enough to combine the voice and gesture recognition with the presence of your smartphone as electronic identification,”

As technology becomes more advanced, it becomes easier to do everything on your phone including shopping, paying bills and switching providers. Here’s some advice regarding spending money via smartphone apps:

1. Always check the app is legitimate – There are ways to check that an app is legitimate from looking up the publisher to reading the reviews, checking the published date and checking the description for spelling and grammar mistakes. Still not sure? Go to the company’s website and click their link to the App Store which will direct you straight to their app.
2. Use vouchers and sign up for the e-newsletter – A great way to save money on purchases, e-newsletters often offer special events and discounts for those signed up and to save a bit of money on your purchases always check for any online vouchers to save a few precious pounds.
3. Consider purchases before buying – Do you really need this item or do you just want it? Can you afford it or are you going to have to stick it on credit? Question before purchasing if you want to save money and cut back on what you are buying.
4. Create an account with a strong password – Having an account allows you to track orders and deal with any issues as quickly as possible. Checking out as a guest may be quicker but it can be more difficult to deal with any issues further down the line.
5. Don’t save bank details – When you create your account, try not to save your bank details. Although it can save you time on future orders, if someone manages to hack into your account they will have your bank details and they can use your account to buy products through the store.

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