On-demand services such as ridesharing and
restaurant delivery represent fastest growing purchase category
overall
Fiserv, Inc. (NASDAQ: FISV), a leading global provider of
payments and financial services technology solutions, today
released a new study, “The Global Rise of Digital Goods and
Services,” which found that nearly three quarters (74%) of online
purchases worldwide are for digital goods and services.
The study, originally commissioned by First Data, now Fiserv,
evaluated the digital goods and services market and how purchase
rates differ by region and demographic group, querying more than
6,000 consumers across 15 countries and four different age groups –
Linksters (18-23), Socializers (24-34), MTV Generation (34-54) and
Maturists (55+). Within the study, digital goods and services are
defined as on-demand services, digital subscriptions, digital
media, computer software and mobile apps.
“The rise of digital goods and services present ample
opportunities for businesses to grow and enhance customer loyalty,”
said Nandan Sheth, head of Global Digital Commerce, Fiserv. “This
requires accounting for local payment preferences and nuances,
enabling new digital experiences for customers, and ensuring secure
commerce that is seamless across channels.”
On-demand services, including ridesharing, restaurant delivery,
business services and home-sharing, are the fastest growing
purchase category among all age groups. The average consumer made
31 on-demand services purchases in the last 12 months, and 71% of
consumers who made on-demand service purchases this year spent the
same or more on on-demand services compared to the previous
year.
The study also found that 57% of consumers will stop shopping at
an online merchant or cancel a digital service entirely after a
negative purchasing experience.
“As businesses expand their digital approach to represent a true
omni-channel strategy, consumer experience remains paramount,” said
Sheth.
Ridesharing
Ridesharing is the most commonly purchased on-demand service,
although with a high degree of variation by country. Malaysia led
all countries in the average number of times consumers utilized
ridesharing services (13.17) over the last 12 months, while North
America neared six (5.98). Ridesharing is most commonly used by
Socializers (11.8 times per year), who use ridesharing nearly twice
as often as Linksters (7.3) and the MTV Generation (6.4), and over
three times as often as Maturists (3.6).
Restaurant Delivery
Restaurant delivery is the second most popular on-demand
service, and despite the growing convergence with ridesharing
services, the regional and demographic trends do not mirror those
of ridesharing. Brazil led all countries in the average number of
times consumers utilized restaurant delivery services (10.2) over
the last 12 months, while Malaysia ranked sixth (8.26) and North
America came in tenth (4.73). The MTV Generation used restaurant
delivery more frequently than ridesharing in the previous year, and
the inverse is true for Linksters.
Digital Media Subscriptions
Across all age groups, consumers have an average of nearly two
(1.96) digital media subscriptions, with video streaming the most
popular type of media subscription overall — 47% of consumers
globally reported having at least one video-streaming service
subscription. North America, Scandinavia, and Australia have the
highest average number of video-streaming subscriptions per person,
while India, the Philippines, and Poland have the fewest. Music is
the second most popular digital media subscription type among
consumers, as 34% of consumers are subscribing to music-streaming
services. Brazil, Argentina and Mexico are the top three countries
for downloading and streaming music.
Gaming
While the gaming category, which includes the purchase of
mobile, console and computer-based games and in-game content,
traditionally has and continues to skew young, it is still a
thriving market among all age groups. This is thanks in part to new
advancements in mobile, streaming, payment and artificial
intelligence (AI) technologies.
In the past 12 months, Socializers led in gaming purchases, with
51% having made a purchase, with Linksters coming in second (45%),
followed by the MTV Generation (36%) and Maturists (13%).
Regionally, consumers in Argentina, Germany, and Brazil made the
most gaming purchases over the last 12 months, whereas consumers in
Poland, Scandinavia, and the U.K. purchased the least
frequently.
Other Facts: At a Glance
- Socializers are number one when it comes to purchasing
digital goods, with 57% having made a purchase in the previous
year, followed by Linksters at 49%. Socializers are key purchasers
of home-sharing and travel rental services, business services, and
all things gaming-related.
- Common payment methods for Linksters include debit cards
(46%) and online/mobile pay (45%); Linksters are also the
demographic most likely to use cash. Socializers’ common payment
methods include: online/mobile pay (58%), debit cards (53%) and
credit cards (46%).
- MTV Generation is the fastest growing demographic in India,
Mexico and Argentina. The fastest growing purchase category
among the MTV Generation is on-demand, and the most purchased
non-physical goods include online gaming, online news and magazine
subscriptions, meal or grocery delivery services, paid podcast
subscriptions and music or video streaming subscriptions.
- Maturists might be the least frequent purchasers of digital
goods overall, but they are the most frequent purchasers in
rural and urban areas, especially in India (39%) and Poland (41%).
They care the most about the safety and security of payments, with
77% saying it was important or very important. Despite these
security concerns Maturists are the most likely to store their
payment information online.
Methodology
In May 2019, First Data, now Fiserv, commissioned Forrester
Consulting to evaluate the nonphysical/digital goods and services
market and how purchase rates differ by region and demographic.
Forrester conducted an online survey of 6,115 online adults ages
18+ to explore this topic. In this study, Forrester looked at
online segments from 12 countries/ regions: Australia, Argentina,
Brazil, India, Mexico, Malaysia, North America (US and Canada), the
Philippines, Scandinavia (Denmark, Norway, and Sweden), and the
United Kingdom. The organization also examined four different age
groups: Linksters (ages 18 to 23), Socializers (ages 24 to 37), the
MTV Generation (ages 38 to 53), and Maturists (ages 54+).
Additional Resources
The Global Rise of Digital Goods and Services (White Paper) –
https://fisv.co/2m2cT18
About Fiserv
Fiserv, Inc. (NASDAQ: FISV) aspires to move money and
information in a way that moves the world. As a global leader in
payments and financial technology, the company helps clients
achieve best-in-class results through a commitment to innovation
and excellence in areas including account processing and digital
banking solutions; card issuer processing and network services;
payments; e-commerce; merchant acquiring and processing; and the
Clover™ cloud-based point-of-sale solution. Fiserv is a member of
the S&P 500® Index and the FORTUNE®500 and is among the FORTUNE
Magazine World’s Most Admired Companies®. Visit fiserv.com and
follow on social media for more information and the latest company
news.
FISV-G
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version on businesswire.com: https://www.businesswire.com/news/home/20190911005147/en/
Media Relations: Chase Wallace Director, Communications
Fiserv, Inc. +1 404-890-2132 chase.wallace@fiserv.com Additional
Contact: Ann Cave Director, External Communications Fiserv,
Inc. +1 678-325-9435 ann.cave@fiserv.com
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