Research from PXP Financial shows that Generation X online gamblers are the most likely group to use credit cards.
The survey, which PXP Financial conducted at ICE London, found that 59% of Generation X (those born between 1965 and 1980) used credit cards for online gaming and betting.
This compares to only 29% of Generation X using debit cards as their main form of payment. Millennials appear the most likely to use debit cards, with 49% of them using them to pay for online gaming.
Who spends the most?
PXP Finance found that 52% of those surveyed said that millennials spent the most on gambling.
Despite this, 33% of Generation X actually said it was their generation that spent the most.
The newest and youngest group- Generation Z- is yet to make any significant impact on the online payments industry. But, in the future, it will be interesting to see how much they spend on online gaming and by what method. It seems likely they will favour e-wallets and digital systems, rather than the traditional card payment.
Credit cards for online gaming
However, as the Gambling Commission announced in January, credit cards will be banned as an online gaming payment method. Based on the evidence above, this is likely to affect the Generation X gamers and gamblers the most.
This ban will come into action from the 14th April 2020.
It is one of the social responsibility measures introduced by the Gambling Commission, as it aims to tackle the risk of problem gambling. Many of those classed as “problem gamblers” use credit cards to gamble even further, which can exacerbate their already existing financial issues.
The ban on credit cards aims to minimise the danger of problem debt and reduce the harm gambling can pose to individuals. It aims to ensure that people only gamble with money they have and can afford to spend. This should then help to keep gambling fun and enjoyable.
As part of the survey at ICE London, PXP also asked individuals about this ban on credit cards.
They found that 55% believed the ban would have a negative impact on the gaming industry. This rose to 67% when you just look at the Generation X category.
“greater understanding of its target groups”
Koen Vanpraet, CEO of PXP Financial said:
“At PXP Financial we work hard to ensure we understand trends within various markets and how they will affect our clients.
“It is our hope that the insights provided within this sentiment research will provide the industry with a greater understanding of its target groups and help our clients with their market strategies.”