Payment options for different consumer needs

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Spending preferences are increasingly diverse. Debit cards (42%) are the most used payment method by Italians this year compared to last year, but credit cards and prepaid chinese overseas british database cards (37%), bank transfers (33%) and digital wallets (29%) have also increased in popularity, with the emergence of new payment methods and platforms. Nearly half (47%) of Italian consumers have made an online purchase through social media, and 33% do so several times a year. Nearly a third (29%) of people now use a wearable device, such as a smartwatch, to pay.

Attitudes towards emerging technologies vary by generation, with younger people more likely to embrace innovative payment options, such as AI-powered payments. Around a fifth (21%) of 18-43 year-olds are fully comfortable with using AI to improve payments, compared to 26% of those aged 60 and over who are not at all comfortable with the idea of ​​AI in payments.

Financial strength
By examining the data behind these changing payment habits, the research reveals the financial challenges faced by many consumers around the world. In Italy, more than half (62%) of respondents say they earn just enough to cover their monthly expenses and just over a quarter (28%) say they do not earn enough to cover their monthly expenses, with this figure rising to 37% for Gen Z. While the majority of respondents expect their income to increase in the next 5-10 years, more than half (56%) believe their income will increase by 10% or less and 28% say they do not expect any increase. Despite limited disposable income at the start of their careers, Gen Z and Millennials were confident about their future earning potential, expecting increases of 16% and 11%, respectively. But with many consumers living paycheck to paycheck , the opportunity to save has diminished, with 40% saving less than 6% of their income each month and 13% not saving at all (down from 18% in Paysafe’s 2023 survey). The inability to save can be attributed to the rising cost of living, with respondents reporting they are spending more on everyday necessities such as groceries (65%), utilities (65%), essentials and childcare (47%).

Optimistic outlook
Paysafe data indicates a sense of optimism among consumers, with 48% of respondents – and 59% of Gen Z – saying they are confident about their financial future and planning for it. A fifth (20%) of respondents are saving for their first home. This rises to almost half (43%) of Gen Z respondents, who plan to buy their first home before the age of 34. While globally, Gen Z’s positive outlook extends to the belief that they can reach another major milestone at a young age, with 49% expecting to retire before the age of 61, in Italy this prediction is confirmed by only around a fifth of respondents (18%).