Consumers Optimistic About 2024 Financial Outlook, as Paysafe Research Reveals Shifts in Spending and Saving Habits
07 Dezember 2023 - 10:00AM
Business Wire
42% of consumers will prioritize spending on
experiences over possessions, even as costs rise
After a challenging 2023, nearly half (49%) of consumers
worldwide are confident that their financial situation will improve
in the coming year. This is according to new research from Paysafe
(NYSE: PSFE), which reveals a consumer landscape characterised by a
mix of optimism, caution, and a willingness to adapt spending
habits.
The research surveyed 14,500 consumers across Europe, North
America, and Latin America for Paysafe’s Lost in Transaction 2023:
The Disposable Income Report - How consumers are changing their
discretionary spending.
Optimism is particularly pronounced among Millennials and
Generation Z, with 57% of each group expressing confidence in their
near-term financial future. However, consumers acknowledge
improvement will require more proactive measures as they manage
high living costs and their money differently – with one in two
(50%) intending to alter their spending habits. In terms of
discretionary spend, the research also indicated that a growing
proportion of consumers are prioritising in-home entertainment
(23%) more than before, with nearly a third saying they will spend
less on clothing (32%).
Conversely, over a third of consumers (37%) admitted to saving
less due to rising living costs or not saving at all (18%). Despite
this, 47% believe they will be able to save more in the coming
year.
In response to the changing financial landscape, more are
turning to budgeting tools and apps for assistance. These apps are
primarily used to plan how to save as well as how to balance
various expenditures and how to better manage discretionary
spending. A substantial 55% of respondents said they already use
these apps, and 38% plan to increase their reliance on them in
2024.
Furthermore, the research reveals a shift in how consumers plan
to allocate their disposable income. Over two-fifths (42%) are
opting to spend less on physical goods, instead prioritising
spending on experiences, even as costs rise. This is especially so
in Brazil (52%) and the US (51%), but less common in Austria and
Germany (29%).
This shift to increasing spend in the experience economy is
reflected in consumer attitudes to travel, which should maintain
its upward trajectory as 43% are planning on spending more or the
same on package holidays, and 41% on flights. While budgets have
tightened, spending on online sports bets (18%) and in-game
purchases (19%) have remained the same before inflation and the
cost-of-living crisis.
Regarding online spending over the past six months, 31%
expressed no preference between large and small eCommerce
businesses. As consumers navigate an evolving economic environment,
businesses, whether they may be small or big, should pay attention
to shifting trends and tailor their offerings to meet the changing
needs and expectations of their customers.
An ongoing concern in the online shopping experience continues
to be security. There is clear reluctance among many to share
financial details online, with only 43% comfortable doing so with a
small business versus 56% with a large one. Small businesses must
resolve these security challenges to take advantage of positive
signs for next year given some 42% intend to shop more at local
businesses in 2024.
Commenting on the research, Rob Gatto, Chief Revenue Officer at
Paysafe, said: “Consumers will prioritise discretionary spend on
goods and experiences that bring them joy. This is a consistent
trend that is clearly supported by our research. For businesses,
large or small, to capitalise on this, it means making every
experience, and every transaction count. By offering a frictionless
checkout experience, businesses increase customer experience and
loyalty.”
About the research
The research, which was conducted on behalf of Paysafe by Sapio
study in October 2023 and covers the UK, US, Canada, Germany,
Austria, Bulgaria, Italy, Peru, Chile, Brazil, Mexico, Colombia,
Argentina and Ecuador, explored changing consumer spending
behaviours and attitudes towards payments.
About Paysafe Limited
Paysafe Limited (“Paysafe”) (NYSE: PSFE) (PSFE.WS) is a leading
payments platform with an extensive track record of serving
merchants and consumers in the global entertainment sectors. Its
core purpose is to enable businesses and consumers to connect and
transact seamlessly through industry-leading capabilities in
payment processing, digital wallet, and online cash solutions. With
over 20 years of online payment experience, an annualized
transactional volume of over $130 billion in 2022, and
approximately 3,300 employees located in 12+ countries, Paysafe
connects businesses and consumers across more than 100 payment
types in over 40 currencies around the world. Delivered through an
integrated platform, Paysafe solutions are geared toward
mobile-initiated transactions, real-time analytics and the
convergence between brick-and-mortar and online payments. Further
information is available at www.paysafe.com
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