COSTA MESA, Calif.–(BUSINESS WIRE)–New Experian Global Outlook Report concludes that online digital spending will continue to strengthen even as consumers emerge from lockdown and return to in-person transactions. Consumers are also using digital payments as much as they are using email. The growth curve of online spending has increased the use of mobile wallets which now rival traditional payment methods. The latest report shows that 62% of respondents say they currently use mobile wallets, while 63% use traditional payment methods.
Consumers said they want fast, smooth and secure transactions, with 81% saying a positive digital experience gives them a better opinion of the brand compared to a traditional brick-and-mortar experience. This trend is also good for business. It shows that 53% of consumers surveyed have increased their spending and transactions on digital channels over the past three months, with 50% of respondents saying this is likely to increase over the next three months.
David Bernard, Experian’s Executive Vice President of Strategy and Operations for Global Decision Analytics, discusses the trends indicated in the pandemic report. “Results from our latest survey reveal that many consumers are more concerned about the security of their online transactions and activities today than they were a year ago, with regional differences in the nature of their top concerns,” said Bernard said. “The past two years have given way to a digitally savvy consumer, who has a growing awareness and understanding of advanced, frictionless security methods. Consumers are looking to make their jobs and lives easier and safer.
The report also clarifies that consumers have a preference when creating new accounts, with banking websites, mobile retail and credit card apps leading the way. Digitally savvy consumers place the most trust in payment service providers, credit card companies, technology and streaming media companies.
An added business advantage 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 US and UK, 60% say they are doing just that with programs like BNPL. In the US, 4 in 5 consumers use BNPL to avoid credit card debt, while 7 in 10 UK consumers say the same. In addition, 57% of respondents say BNPL could replace their traditional payment method.
Businesses still have room to meet customer expectations for digital experience. 23% of consumers surveyed say their digital experience expectations have been met little or not at all. This percentage is down from 30% in the fourth quarter of 2021. Only 23% of consumers are very confident that companies will address their online security concerns. The tide has also changed as 73% of consumers have placed the responsibility on businesses to protect them online.
Consumers surveyed are also more aware of the value of their data. 90% of customers want full or partial control over how their data is used, with 57% willing to share data if it provides greater security or prevents fraud. There are regional differences in security. For example, identity theft and stolen credit card information far outweigh other concerns in the United States, while data privacy is a top concern in China. Over 50% of respondents are concerned about deep fake fraud in Malaysia and Peru.
Other findings from the report include:
52% are concerned about the security of their online transactions.
42% are more concerned about their online safety in the past 12 months
63% of consumers say they will share their personal data for valuable purposes, up from 51% in 2021
To develop the study, Experian surveyed 6,000 consumers and 2,000 businesses in 20 countries, including Australia, Brazil, Chile, China, Colombia, Denmark, Germany, India, Indonesia, Ireland, Italy, Malaysia, Netherlands, Norway, Peru, Singapore, South Africa, Spain, United Kingdom and United States, on information related to consumer economic outlook and business, financial well-being, online behavior and more. This report is the latest in a series exploring significant shifts in consumer digital preferences and business strategy over the past seven years.
Download the latest Global Insights report to learn more about Experian Decision Analytics results.
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