Recent research by ECOMMPAY, an international payments service provider and direct acquirer bank cards, revealed that while 75% of U.K. citizens consider themselves financially savvy, 24% still need to have a better understanding about the effects of Buy Now, Pay Later (BNPL).
This study revealed that 54% of business leaders (54%) still have difficulties supporting online financial education for customers and their partners.
ECOMMPAY research revealed that 64% feel financially literate about opening bank accounts and understanding the impact of different payment options. Only 14% of consumers understood open banking better than the previous year.
The research revealed that over half of respondents believed they knew enough about cryptocurrency to be able to use them for payment. 46% however, said they didn’t understand or know anything about cryptocurrency.
Nearly 50% of the business leaders surveyed believed it was banks’ responsibility to educate consumers on online financial education. Governments (41%), and payment providers (40%) were next in line.
Paul Marcantonio, ECOMMPAY UK & Western Europe CEO, commented about the development: “Our research has shown that consumers rely heavily on their financial education and are generally smarter when it comes to using the latest financial tools.”
“However, it is important to continue education and support in order for all new payment options to be responsibly used and that consumers aren’t left in the dark about what the implications of trading cryptocurrencies and accepting BNPL plans. The executive explained that financial education is vital to ensure consumers are able to take advantage of the new payment options as they work to recover their businesses and navigate the cost of living crisis.
Leadership: Taking Charge
Crypto lending is a promising new way to borrow money. However, consumers need to be aware of potential risks and ways they can protect themselves.
It is crucial to educate consumers about the recent market crash that severely affected many crypto lending firms as well as their customers.
More consumers are realizing financial freedom thanks to cryptocurrency lending’s recent growth. Blockchain technology and decentralized financial protocols are bringing many benefits to consumers.
Customers who are unable to get a traditional loan due to a bank’s minimum investment requirement, fees or low credit score have now got options through crypto lending.
The Digital Asset Advocacy Group (DAAG) was established in April in the United States to inform consumers about the risks and opportunities associated with cryptocurrency lending.
The Treasury Department in March ordered the Financial Literacy and Education Commission to form a new subgroup on digital asset financial education to produce consistent, trusted and consumer-friendly educational materials, tools, and outreach to assist consumers in making informed decisions about digital assets.
The U.S. Nellie Liang (Under Secretary of Treasury for Domestic Finance) stated that private money can pose risks to consumers and the financial system if there are not enough safeguards.