Source: Paysafe
42% of consumers will prioritize spending on experiences over possessions, even as costs rise
London — 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.
