Marqeta Finds More Consumers Are Looking to Digital Solutions Like Crypto in Economic Downturn

MarketaThe global state-of-the-art card issuing platform has released its first Consumer Pulse Report. The report is based on his February 2023 survey of his 4,000 consumers in the UK, US and Australia. Conducted on behalf of Marketa. propeller researchThis report details the impact of dynamic economic conditions and new financial technologies on consumer behavior.

Economic uncertainty was one of the key factors for many consumers surveyed, according to Marqeta. This was due to rising costs and an uncertain job market. Of those surveyed, 61% aged 26 to her 50 reported having changed their household budget due to the current economic situation. On the other hand, about half of those aged 18-25 and those aged 51-64 said the same.

When asked to recall specific economic examples that influence their spending habits, more than half (57%) of respondents reported delaying at least one major purchase. The reasons for doing so are rising interest rates or the general state of the economy.

Impact on housing

Housing is an example of the impact of current economic conditions. More than half (54%) of renters surveyed report an increase in rent within the last 12 months. For prospective buyers, rising interest rates make buying a home more expensive. More than half (51%) of renters surveyed indicate that they have made the decision to delay buying a home due to rising interest rates and the general state of the economy.

The rapid pace of innovation in financial services was another factor impacting consumers this quarter. In response to the emergence of new tools and services, consumers are evaluating their options according to their needs and awareness of new financial services.

Our report shows that consumers are beginning to open up to the unprecedented level of choice they currently have in financial services, alongside heightened consumer uncertainty around rising inflation. I’m here. Rachel Huber, Market Intelligence Lead for Marqeta. With the rise of digital banking and embedded financial options, it is imperative that brands understand how expectations and preferences are being shaped by innovation and macroeconomic conditions.

Is your solution in Embedded Finance?

In addition to new services offered by banks, consumers are also considering many options offered by non-traditional providers via embedded financial services. Nearly half (47%) of respondents reported that they would consider financial services from non-financial institutions. For example, technology companies, social networks, retailers, etc.

Considerable educational gaps remain among these new populations. bank option, but. Twenty-nine percent of consumers who have never considered these new financial services report being unaware of these options. 36% indicate they do not understand the value of these new services.

Banking preferences are one example of the impact of this increased choice. When respondents were presented with a list of new digital banking capabilities, nearly half said they were already using the tools or were interested in adopting them in the future. Most popular were the well-established overdraft protection feature and less common savings tools such as automatic deposits to savings accounts and rounding up card purchases to the nearest dollar to deposit into savings. .

Curiosity about cryptography

Consumer curiosity and cryptocurrency exploration remained high as of early 2023. Consumers surveyed wanted more options for spending cryptocurrencies. Despite this, many remained uncertain about the space.

More than a quarter (27%) of those surveyed wanted it easier to spend on their crypto balances. Almost the same percentage (28%) agreed that being able to buy with cryptocurrency was a big advantage and made shopping easier. Consumers want to use cryptocurrencies. However, they still want the security of traditional accounts.Marqeta reports that a majority of respondents (59%) are uneasy about holding a significant portion of their savings in cryptocurrencies. I agree with you.