A new report from Paysafe showed that 27% of consumers plan to increase use of subscription services next year.
This expectation suggests consumers' increasing reliance on subscription services, particularly those that provide news, education, nourishment, and other services.
The global research Lost in Transactions revealed that Covid-19 is likely a cause of the surge in demand for subscription services. People decided to subscribe for service out of safety concerns. Subscriptions allow badly needed goods and services to be purchased without the need to check it out each time. Consumers are reportedly leaning into simple shopping experiences.
Moreover, 69% of Americans have multiple subscriptions, with 28% sharing that they have at least four subscription.
Globally, 27% say they will increase their number of subscriptions. These include consumers in the US (36%), Italy (25%), Canada (23%) and the UK (21%). All giving subscription providers further reason for optimism.
Around half (44%) of respondents believe that subscription services are a better value than other payment options for a similar service or product. On the other hand, 53% of consumers agree subscription services are more convenient in terms of payment. Canada comes behind the US with the highest number of those with multiple subscriptions with 50% of them having multiple subscriptions. The rest of the top five include Germany (49%), the UK (47%) and Austria (45%).
Only 10% admitted their number of subscriptions was likely to fall either slightly (6%) or significantly (5%).
Consumer behavior
What consumers are concerned about as coronavirus pandemic persists has changed, based on the latest Global State of the Consumer Tracker by Deloitte.
While consumers are starting to cope with health issues and anxiety, their financial worries remain abundant, which will affect industries such as the automotive market.
The Global State of the Consumer Tracker reveals important shifts in sentiment and spending goals since the COVID-19 peak in April.
The auto retail market suffered from low demand due to self-isolation measures for an extended period of time. Financial issues may become a huge factor of how people will be interested in the automotive sector.
Health concerns can also affect one’s choice between owning a vehicle and using alternative transportation modes in the near future.
Findings of the tracker showed that 27% of consumers are concerned about meeting upcoming payments and 43% are delaying large purchases.
Nearly half or 49% of vehicle owners intend to keep their car longer than they originally planned, while 27% of current owners are not having regular maintenance for their vehicles.
Meanwhile, personal health remains the top concern of less than half of US consumers (48%). However, this is a decline from 57% measured during the peak in early April.
In addition, people are considering their use of public transit (60%) and ride-hailing services (57%) over the next three months.
For millennials, their immediate financial concerns rise, as 36% of 18- to 35-year-olds are worried about making upcoming car payments. They also fear losing their jobs, with 37% of US consumers concerned about unemployment.
Going to the store appears safe now, according to more consumers (42%), an increase from 30% in April.
Moreover, the number of consumers who plan to buy online is gradually declining, particularly in restaurants. However, this trend is similar in categories like apparel and electronics.
