The post-pandemic consumer is more digital, cautious and conscientious
COVID-19 has seen consumers across the world ditch cash and in-person shopping in favour of online spending, according to Standard Chartered latest global survey. Almost two-thirds of survey respondents (64 per cent) agree that COVID-19 has made them more positive about online shopping, but they are also more careful with their spending and want new ways to track their money digitally.
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The study of 12,000 adults across 12 markets – Hong Kong, India, Indonesia, Kenya, Mainland China, Malaysia, Pakistan, Singapore, Taiwan, UAE, the UK and the US – is the second in a three-part series, looking at how COVID-19 has transformed consumers’ way of life, and what changes could be here to stay. While the first survey focused on the pandemic’s impact on earnings, the second offers new insights into the way the global health crisis is changing consumer spending habits.
Before the pandemic, two-thirds of survey respondents said they preferred to shop in-person compared to only one-third online. This dynamic has shifted significantly with almost half (48 per cent) preferring online payments to in-person card or cash payments. This increase in preference for online payments is true across a range of purchases, from groceries and travel to digital devices. As a result, almost two-thirds (64 per cent) globally now expect their country to go fully cashless, with almost half (44 per cent) expecting this to happen by 2030.
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Respondents in all 12 markets anticipate doing more of their shopping online from now on, with people in Kenya foreseeing a 30 per cent increase in their online spending, those in the UAE thinking it will increase by 18 per cent and those in Indonesia by 16 per cent. While still anticipating an overall increase, respondents in the UK, Mainland China, the US and Taiwan believe their online spending will only grow by less than 10 per cent in the future.
The survey results are supported by Standard Chartered’s ATM withdrawals data. Across the ten surveyed markets where Standard Chartered offers retail banking (all except the UK and US), COVID-19 has dramatically accelerated the decline in ATM usage. Cash withdrawals from ATMs are now half what they were two years ago.
