Experiences Reign Supreme During Squeeze on Consumer Finances, According to Paysafe
June 01 2023 - 4:00AM
Business Wire
Research released by Paysafe highlights how
consumers are prioritising expenditure and how they are paying for
it
Consumer demand for travel, leisure and other experiences
remains strong despite the increase in cost of living according to
Paysafe (NYSE: PSFE) research* released today. The leading payments
platform found that 51% of consumers are still prioritising spend
in these areas over other discretionary spending.
The research also revealed that over 27% of consumers are
spending even more on eating out and takeaways than they did before
the cost-of-living crisis, 25% are spending more on streaming
services, and 17% are spending more on travel including days out,
flights, and package holidays. Few respondents had stopped their
discretionary spending altogether, at 7% for streaming services,
takeaways, and eating out, and 13% for flights, package holidays
and sports bets.
The report surveyed 14,500 consumers across Europe, North
America and Latin America for Paysafe’s annual ‘Lost in
Transaction’ study: Consumer Payment Trends 2023: How consumers’
shifting priorities are impacting the experience economy.
Despite the prioritisation of experiences, against a challenging
economic backdrop, budget consciousness appears to be top of mind
for many consumers. Forty-seven percent of consumers said they’d
abandoned their carts at the checkout due to tighter budget
constraints and would rather make purchases during seasonal sales
or discounting events like Black Friday (67%).
Over half (57%) of consumers have cut down on larger purchases
and are instead making smaller purchases more often, while 61% are
evaluating how they can cut further costs by repairing an item
rather than replacing it. Others are tapping into the added
benefits of digital wallets and eCash to manage their financial
constraints, with just under half (48%) of digital wallet users
saying they value this payment method’s connection to third-party
money management tools.
eCash has seen a major jump in consumer adoption (now 60%,
against only 26% last year), while more than two-thirds (69%) of
consumers are now using digital wallets more regularly (compared to
41% in 2022’s research). In fact, 52% of consumers say they would
now be happy to leave the house without a physical wallet and rely
solely on a digital wallet or mobile device for purchases.
Commenting on the research, Rob Gatto, Chief Revenue Officer at
Paysafe, said: “Our research shows that experiences are paramount –
whether that’s where consumers are looking to spend their
hard-earned cash, or how they are checking out for essential items.
Even before the squeeze on household finances, consumers were
already comfortable abandoning their carts. Now that they have the
additional concern of tight budgets on their minds, they'll be even
more likely to do so if they're hit with surprise shipping fees,
can't use their preferred payment methods, or encounter other
unwanted friction points at the checkout. It’s never been more
important for online businesses to ensure their checkout is
optimised for a seamless customer experience.”
For additional takeaways from the research, as well as further
analysis, download the full report: Lost in Transaction Consumer
Payment Trends 2023: How consumers’ shifting priorities are
impacting the experience economy.
###
NOTES TO EDITORS
Paysafe will be at Money20/20 Europe in Amsterdam from June 6 –
8. To request a media interview about the findings or Paysafe’s
consumer research, please contact pr@paysafe.com.
About the research
The research*, which was conducted on behalf of Paysafe by Sapio
Research in April 2023 and covers the UK, US, Canada, Germany,
Austria, Bulgaria, Italy, Peru, Chile, Brazil, Mexico, Colombia,
Argentina and Ecuador explored changing consumer behaviours 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
25 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 250 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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