New Research Finds Consumers Demand Payment Choice, Worry About Cash Access, and Remain Optimistic About Their Financial Future
August 14 2024 - 3:00AM
Business Wire
Paysafe’s annual Inside the Wallet report
polled the spending and saving habits of 14,500 people across age
groups from around the world
Over half of consumers worldwide (56%) have changed their
spending habits from a year ago, not only becoming more price
conscious but demanding payment choice, from debit cards and bank
transfers to digital wallets and cash, according to new research
from Paysafe (NYSE: PSFE), a global payment processor and digital
wallet provider.
According to Paysafe’s report, ‘Inside the Wallet: How consumers
are spending and saving in 2024’, 43% of consumers have abandoned
their online shopping cart if a business didn’t offer their payment
method of choice. With retailers increasingly adopting cashless
policies, an overwhelming number of consumers (63%) expressed
concern about losing cash as a payment option, with another 44% of
people indicating that they want to be able to buy goods or
services online and pay for them in cash at a local store.
Security in payments was also top of mind for respondents. More
than half of people (54%) said that security in a business’s
payment process is an important factor when deciding how to
purchase online. While two-thirds of consumers reported feeling
better buying from a business if they know there are security steps
in place to protect their data or if they see a payment option they
recognize.
Payment Options for Diverse Consumer Needs
Spending preferences are growing increasingly diverse. Debit
cards (53%) are the top payment method being used more frequently
this year vs last year, but bank transfers (39%), credit cards
(33%), and digital wallets (32%) have also increased in popularity,
with new payment methods and platforms beginning to emerge. Over
half (58%) of consumers have made an online purchase through social
media, with 38% doing so multiple times a year. Another one-third
(32%) of people are now using a wearable device, such as a
smartwatch, to pay.
Attitudes to developing technologies vary by generation, with
younger people more likely to embrace innovative payment options,
such as AI-powered payments. Over a third (36%) of 18-43-year-olds
are fully comfortable with AI being used to improve payments. This
compares to 33% of those aged 60 and over who are not comfortable
at all with the idea of AI in payments.
Bob Legters, Paysafe’s SVP Product, commented: “Consumers are
comparison shopping more than ever, not only to find the best deal
but the best payment experience that delivers choices, security,
and speed, and keeps them coming back. As consumers’ financial
situations and priorities shift, businesses need payment partners
that have a track record of offering innovative payment options
that attract a wide pool of consumers—from younger to older and
every age in between.”
Financial Health
Diving deeper into the data behind these changing payment
habits, the research reveals the financial challenges faced by many
global consumers. Over half (56%) of respondents say that they are
earning just enough to cover their monthly expenses and a quarter
(25%) say they are not earning enough money to cover their monthly
expenses, with the figure rising to 33% for Gen Z.
While most respondents anticipate an increase in their income
over the next 5 to 10 years – around half (49%) believe their
income will rise by 10% or less, and 12% say they don’t expect any
increase. Despite having limited disposable income early in their
careers, Gen Z and Millennials were hopeful about their future
earning potential, anticipating increases of 20% and 18%
respectively.
But with many consumers living pay cheque to pay cheque, the
opportunity to save has decreased, with 39% saving less than 6% of
their income each month and 14% not saving at all (down from 18% in
Paysafe’s 2023 research). The inability to save can be attributed
to an increase in the cost-of-living, with respondents reporting
that they’re spending more on everyday necessities like groceries
(66%), utilities (57%) and essential consumer goods (51%).
Optimistic Outlook
Paysafe’s data indicates a sense of optimism among consumers,
with 60% of respondents – and 78% of Gen Z – expressing confidence
about their financial future, and planning towards this.
Over a quarter (27%) of respondents are saving to buy their
first home. This rises to nearly half (48%) of Gen Z respondents,
who expect to purchase their first home before the age of 32. Gen
Z’s positive outlook extends to the belief that they can achieve
another major milestone early in life – nearly half (49%) expect to
retire before the age of 61.
For additional takeaways from the research, as well as further
guidance on how businesses should respond, download the full report
here: https://www.paysafe.com/en/inside-the-wallet/
About Paysafe
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 25 years of online payment experience, an annualized
transactional volume of $140 billion in 2023, and approximately
3,200 employees located in 12+ countries, Paysafe connects
businesses and consumers across 260 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.
About the Research
The research was conducted on behalf of Paysafe by Sapio
Research between May and June 2024. It surveyed 14,500 respondents
over 18 years old from UK, USA, Canada, Mexico, Germany, Austria,
Bulgaria, Italy, Peru, Chile, Brazil, Colombia, Argentina and
Ecuador.
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