Marqeta Survey Finds Consumers Interested in Embedded Finance Offerings Amid Continued Fears of Recession, Despite Improved Economic Outlook
14 September 2023 - 10:00AM
Business Wire
- 67% of consumers surveyed said that they’ve changed their
financial habits to cut spending amidst economic uncertainty
- Against this backdrop, consumers surveyed reported growing
demand for Accelerated Wage Access: One out of five US consumers
said they would give up a full week of paid time off (PTO) if they
could get daily access to their wages
- 52% of consumers surveyed under 50 years old said they’d be
interested in using Generative AI to help manage their
finances
While financial analysts have downgraded the likelihood of a
recession to 20% in the next 12 months, lingering recessionary
fears are causing consumers to still cut spending according to the
Q3 2023 Consumer Pulse Report released today by Marqeta, the global
modern card issuing platform. The new report surveyed 3,000
consumers in the US and the UK in partnership with Propeller
Insights, showing that against this backdrop of economic
uncertainty, consumers are reevaluating how new technologies can
help them manage their finances and are flocking to embedded
finance offerings including Accelerated Wage Access to help them
gain access to wages faster. In addition, consumers are showing
demand for seamless and delightful shopping experiences along with
newfound interest in how Generative AI solutions can help them
reduce spending and guide savings.
Marqeta’s Q3 Consumer Pulse report is the second of its kind
where the company has surveyed consumers to get a pulse check on
how they’re adapting to the changing financial landscape. According
to the survey, despite an improved economic outlook, consumers are
feeling the crunch as living costs remain high. Eighty-six percent
of consumers surveyed reported being concerned about an impending
recession and the majority (67%) are changing their financial
habits in order to cut spending.
Daily Wage Access Trumps Other
Conveniences According to the report, embedded finance
solutions that offer accelerated access to wages are striking a
chord with consumers, enabling them to access their wages sooner to
help keep up with rising interest rates and inflation. Over
two-thirds of consumers surveyed (66%) said that if presented with
a choice, they would sacrifice something important to them to get
paid daily– the most popular being a year of takeout food (29%),
social media access (27%), or haircuts (25%). The appeal for daily
access to wages was highest in the US, with 21% of surveyed
consumers saying that they would give up an entire week of PTO,
compared with 15% in the UK, and 16% saying that they’d give up
their retirement savings in order to get daily access to their
paychecks, compared with 10% in the UK – underlining the desire for
a transformation in how workers get paid in today’s economy.
A Seamless Payments Experience More
Important Than Corporate Values When it comes to brand
loyalty, consumers reported the importance of the customer
experience. Brand loyalty relies heavily on ensuring a seamless
customer journey, from the start of the shopping experience to the
checkout and payment process. Almost three-quarters of consumers
surveyed (72%) said they are likely to be more loyal to a brand
because it offers a better customer experience when they purchase a
product or service, including fast checkout, quick shipping, or the
ability to pay with a phone or earn rewards. Eighty-five percent of
consumers think the checkout or payment experience is more
important than a company’s corporate values or social positions
when purchasing from a brand – especially critical for brands as
discretionary spending increases.
“Today, there is no room for anything less than a stellar
customer experience,” said Rachel Huber, Marqeta's Market
Intelligence Lead. “Consumers are demanding seamless touch points
at every stage of the customer lifecycle. Our report shows the
opportunity for companies to think about how they can boost
customer loyalty and offer embedded finance solutions that elevate
their customer experiences and promote financial empowerment.”
Consumers Are Ready For Generative AI
to Generate “Money” With economic uncertainty taking
hold, Marqeta’s report reveals that consumers are increasingly open
to leveraging Generative AI tools to help them with their financial
planning, including budgeting, investing and how to increase their
savings. Over one-third (36%) of consumers surveyed said they’d be
interested in using Generative AI to manage their finances, with
that number increasing to over 50% for individuals younger than 50
years old. US consumers reported being more open to Generative AI
than UK consumers, with 40% agreeing that they’re open to
Generative AI tools, compared to 29% in the UK.
“Generative AI has the potential to be a force for good when it
comes to financial management,” said Huber. “What our findings show
is that after a year of unrelenting rises in living expenses,
consumers are open to emerging technologies that could provide
support and unlock new ways to improve financial well-being.”
Download the full report here.
About the research
The survey was performed on behalf of Marqeta by Propeller
Insights, in June 2023. Marqeta surveyed 3,046 consumers (2,012 in
the United States and 1,034 in the UK) ages 18 and up.
About Marqeta (NASDAQ: MQ) Marqeta’s embedded finance and
modern card issuing platform empowers its customers to create
customized and innovative payment cards and embedded finance
offerings. Marqeta’s platform, powered by open APIs, gives its
customers the ability to build more configurable and flexible
payment experiences, accelerating product development and
democratizing access to card issuing technology. Its modern
architecture provides instant access to highly scalable,
cloud-based payment infrastructure that enables customers to launch
and manage their own card programs, issue cards and authorize and
settle transactions. Marqeta is headquartered in Oakland,
California and is certified to operate in 40 countries globally.
For more information, visit www.marqeta.com, Twitter and
LinkedIn.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements expressed or implied in this press release include, but
are not limited to, quotations and statements relating to changing
consumer preferences; increasing consumer adoption of certain
digital payment methods, products, and solutions; which payment,
banking, and financial services products and solutions may succeed;
technological and market trends; Marqeta’s business; Marqeta’s
products and services; and statements made by Marqeta’s senior
leadership. Actual results may differ materially from the
expectations contained in these statements due to risks and
uncertainties, including, but not limited to, the following: any
factors creating issues with changes in domestic business, market,
financial, political and legal conditions; the effect of and
uncertainties related to the global COVID-19 pandemic on U.S. and
global economies and demand for Marqeta’s services and products;
the uncertainties and direct and indirect effects of the
significant military action against Ukraine launched by Russia,
including threats of attacks against U.S. financial institutions as
retaliation against financial institutions for sanctions imposed
against Russia; the risk that Marqeta is unable to further attract
and grow its customer base; the risk that consumers will not
perceive the benefits of Marqeta’s products and services, including
digital payment and banking products and services; the risk that
Marqeta's products and services do not operate as intended,
including digital payment and banking products and services; the
risk that Marqeta’s products and solutions will not achieve the
expected market acceptance, including digital payment and banking
products and services; and the risk that competition could reduce
expected demand for Marqeta’s products and services, including
digital payment and banking products and services. Detailed
information about these risks and other factors that could
potentially affect Marqeta’s business, financial condition and
results of operations are included in the “Risk Factors” disclosed
in Marqeta's Annual Report on Form 10-K for the year ended December
31, 2022, as such risk factors may be updated from time to time in
Marqeta’s periodic filings with the SEC, available at www.sec.gov
and Marqeta’s website at http://investors.marqeta.com. The
forward-looking statements in this press release are based on
information available to Marqeta as of the date hereof. Marqeta
disclaims any obligation to update any forward-looking statements,
except as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230914504845/en/
James Robinson press@marqeta.com
Marqeta (NASDAQ:MQ)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Marqeta (NASDAQ:MQ)
Historical Stock Chart
Von Mai 2023 bis Mai 2024