Just under half, 42%, of consumers are prioritizing spending on experiences rather than possessions and nearly half, 49%, are confident their financial situation will get better in 2024.
Those are top findings from a Paysafe research that revealed the consumer landscape is a mix of optimism, caution and willingness to adapt spending habits, according to a press release.
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 high among Millennials and Generation Z, with 57% of each group expressing confidence in their near-term financial future. When it comes to discretionary spend, the research indicated a growing proportion of consumers are prioritizing in-home entertainment (23%) more than before, with nearly a third saying they will spend less on clothing (32%).
More consumers are turning to budgeting tools and apps for assistance and the apps are primarily used to plan how to save as well as how to balance various expenditures and how to better manage discretionary spending. More than half, 55%, already use these apps, and 38% plan to increase their reliance on them in 2024.
"Consumers will prioritize 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," Rob Gatto, chief revenue officer at Paysafe, said in the release.