The new Experian Global Insights Report concludes that digital online spending will continue to gain strength even as consumers emerge from lockdown and return to in-person transactions. Consumers are also engaging with digital payments as much as they engage with email. The growth curve of online spending has increased the use of mobile wallets that now rival traditional payment methods. The latest report shows that 62 percent of respondents say they are currently using mobile wallets, while 63 percent use traditional forms of payment.
Consumers stated that they want fast, frictionless, and secure transactions, with 81 percent saying that a positive digital experience makes them think more highly of the brand versus a traditional brick and mortar experience. This trend is also favorable for businesses. It shows that 53 percent of consumers surveyed have increased their spending and transactions on digital channels in the past three months, with 50 percent of respondents saying it will likely increase over the next three months.
David Bernard, Experian’s EVP of Strategy and Operations for Global Decision Analytics, speaks on the trends shown in the report relating to the pandemic. “Results from our latest survey reveal that many consumers are more concerned now about the security of their online transactions and activities than they were a year ago, with regional differences in the nature of their primary concerns,” said Bernard. “The past two years have given way to a digitally savvy consumer, who have a growing awareness and understanding of advanced, frictionless security methods. Consumers seek to make their work and lives easier and safer.”
The report also clarifies that consumers have a preference when establishing new accounts, with banking websites, retail, and credit card company mobile apps leading the way. Digital savvy consumers place the most trust with payment service providers, credit card companies, technology, and streaming media companies.
One additional business benefit with the rise and reach of new payment methods like mobile wallets, Peer-to-Peer (P2P), and Buy Now Pay Later (BNPL) is that businesses are also able to find options for better financial inclusion. In the U.S. and U.K., 60 percent say they are doing just that with programs like BNPL. In the U.S., 4 in 5 consumers use BNPL to avoid credit card debt, whereas 7 in 10 U.K. consumers said the same. Furthermore, 57 percent of respondents say that BNPL could replace their traditional payment method.
Companies still have room to improve meeting customers’ expectations of the digital experience. 23 percent of consumers surveyed say their expectations for the digital experience have only somewhat or not at all been met. This percentage is down from 30 percent in Q4 2021. Only 23 percent of consumers feel very confident that the businesses will address their online security concerns. The tide has also changed as 73 percent of consumers put the onus on companies to protect them online.
Consumers surveyed are also more aware of the value of their data. 90 percent of customers want complete or some control of how their data is used, with 57 percent being willing to share data if it ensures greater security or prevents fraud. There are regional differences for security concern. For instance, identity theft and stolen credit card information far outpace other worries in the U.S, while data privacy is a top concern in China. More than 50 percent of respondents are worried about deep fake fraud in Malaysia and Peru.
Additional findings from the report include:
- 52 percent are concerned about their online transaction security.
- 42 percent are more concerned about their online security in the past 12 months
- 63 percent of consumers say they’ll share their personal data for value, up from 51 percent from 2021
To develop the study, Experian surveyed 6,000 consumers and 2,000 businesses across 20 countries, including Australia, Brazil, Chile, China, Columbia, Denmark, Germany, India, Indonesia, Ireland, Italy, Malaysia, Netherlands, Norway, Peru, Singapore, South Africa, Spain, United Kingdom and United States, on insights related to consumer and business economic outlooks, financial well-being, online behavior and more. This report is the latest study in a series exploring the significant shifts in consumer digital preferences and business strategy over the past seven years.