The average Irish person owes their family and friends a grand total of €152 in small loans, according to new research from PayPal.

It means that Irish people as a whole owe their nearest and dearest a whopping €575 million in small, unpaid debts.

According to a poll of over 1,000 Irish adults, carried out on behalf of money transfer giant, some 300,000 people have fallen out with their loved ones over unpaid I.O.Us.

A quarter of those surveyed said they would now never lend money to their defaulting friend again.

Cash

One-in-five people blamed their failure to pay on not carrying enough cash on them, or not being able to access a cash machine.

Meanwhile, a third of Irish consumers (33%) have found themselves facing cash machine fees and internet or telephone banking charges just to make a payment to friends or family. 

As a result, PayPal has scrapped fees for Euro transfers within Ireland to encourage more consumers to turn away from cash and embrace faster mobile payments.

Costs

PayPal’s EMEA Vice President Louise Phelan said “cash is still king in many people’s eyes, but it doesn’t deserve our loyalty.”

“Cash comes with hidden costs and frustrations, both financial and personal.

“In this day and age, we should expect more from our financial services.

"We have these incredibly powerful computers in our pockets, which should make our lives easier.

"We’ve scrapped fees for Euro money transfers across the nation, so now there’s no excuse for not settling up.”

The no-fee transfers are available through the PayPal app – where payments can be sent using only the recipient’s email address or mobile number.