A survey by Vista Retail Support has found that 87 per cent of students prefer to pay for goods using debit and credit cards, either contactless or Chip and PIN.

With students returning from summer holidays, retail and hospitality industries operating in educational centres throughout the UK, look to benefit from student spending. According to ONS data, students spent over £30 billion in 2015, with the figure expected to rise to £37 billion by 2020.

This survey of students reveals that contactless payment cards (39%) have now surpassed Chip and PIN cards (35%) as the preferred payment method among students, followed by smartphone/wearable payment systems and cash (both 13%).

James Pepper, Technical Services Director at Vista said, “new forms of payment, particularly contactless cards, are proving to be incredibly popular with young shoppers. With schools and universities starting the new term, retailers who aren’t able to cater to this valuable demographic risk losing out on top marks from students.”

Students’ main reason for choosing contactless is that it is quicker (90%) than any other form of payment. Students also prefer to use contactless cards because they eliminate the need to carry cash (46%) and make it easier to keep track of spending (18%), both of which could apply to Chip and PIN cards as well.

With 46 per cent of students saying they would be more likely to spend via contactless cards, and 13 per cent saying they would avoid a shop altogether if contactless payments weren’t accepted, the survey shows a need for retailers to keep up to date with the needs of the market.

James added, “our survey shows a significant shift in how students are choosing to pay for their goods and how they’re willing to avoid retailers who don’t allow room for choice. For canny retailers who have put the right solutions in place, however, the potential gains could be huge as local students become loyal customers.”