Fool.co.uk urges caution ahead of the rollout of contactless technology

David Kuo, Head of Personal Finance at Fool.co.uk, says: “The rollout of contactless credit cards will give consumers a completely new way to pay for low-value items with the wave of a hand. However, just because something is of low-value is not the same as being of no value.

“If contactless technology is driven solely by convenience then that would be one thing. But the technology is also likely to drive revenues, which may lead to higher spend per customer than if consumers stuck with cash.

“Contactless payment may be billed as being more convenient than cash. But it is also likely to lead to consumers buying things they don’t need with money they cannot afford. Consequently, consumers must stick to their budgets, and only then will this innovative technology be revolutionary.”