A study found younger users in the UK are more open minded about trusting non-traditional players for digital payments, while wary about banks.

The research by Neopay, a financial compliance firm, discovered 41 per cent of 25-34 year olds would not trust their bank with such transactions, while only 24 per cent of 35-44 year olds, 24 per cent of 45-54 year olds, and only 17 per cent of 55-64 year olds expressed such concerns.

However, the situation reversed when younger users were asked whether they would trust a tech company, such as Apple or Google. Both firms are active in mobile payments, although neither have made the leap into banking. Among a younger demographic, 32 per cent of 18-24 year olds would trust a tech firm compared to just 17.5 per cent of older users (55-64 year olds).

Scott Dawson, commercial director at Neopay, said: “Traditionally, banks have been synonymous with dependability and solidity. However, since the banking crisis, the sturdiness of banks has been cast into doubt.” Also, the rise in automated processes has eroded the link between user and bank, he added.

“Young people still trust banks, just to a much lesser extent than in previous generations. Other providers of financial services, such as Apple Pay or pre-paid cards, are now very much seen as credible alternatives,” he added.