Paysafe Report: Consumer Financial Outlook Optimistic for 2024

Paysafe’s latest research, encompassing a global survey of 14,500 consumers, reveals a generally optimistic outlook for personal finances in 2024. According to the study, 49% of consumers worldwide anticipate improvements in their financial situation. This sentiment is particularly strong among Millennials and Generation Z, with 57% from each group expressing confidence about their financial future. The report, titled “Lost in Transaction 2023: The Disposable Income Report – How consumers are changing their discretionary spending,” highlights shifts in consumer spending and saving habits in response to the challenges faced in 2023.

The research notes a significant trend of consumers adapting their spending strategies, with 50% planning to modify their habits. This includes a shift towards in-home entertainment (23%) and reduced expenditure on clothing (32%). However, financial constraints have impacted saving habits, with 37% saving less due to rising living costs and 18% not saving at all. Yet, 47% remain hopeful of increasing their savings in the coming year.

Budgeting tools and apps are gaining popularity as consumers seek to manage their finances more effectively. 55% of respondents currently use these tools, with 38% planning to rely on them more in 2024. The research also indicates a shift in discretionary spending, with 42% preferring to spend on experiences over physical goods, notably in Brazil (52%) and the US (51%).

Travel remains a priority for consumers, with 43% planning to spend the same or more on package holidays and 41% on flights. Despite budget constraints, spending on online sports bets and in-game purchases has remained consistent. The online shopping landscape reveals no strong preference between large and small eCommerce businesses (31%), suggesting an opportunity for businesses of all sizes to adapt to changing consumer trends.

Security concerns remain a critical factor in online shopping, with only 43% of consumers comfortable sharing financial details with small businesses compared to 56% with larger ones. This presents a challenge for small businesses to address security issues to capitalize on the positive outlook for 2024, as 42% of consumers intend to shop more at local businesses.

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.”