On-demand services such as ridesharing and restaurant delivery represent fastest growing purchase category overall
BROOKFIELD, Wis .– (BUSINESS WIRE) -#commerce—Fiserv, Inc. (NASDAQ: FISV), leading global provider of payments and financial services technology solutions,The Global Rise of Digital Goods and Services, ”Which found that nearly three quarters (74%) of online purchases for digital goods and services.
The study, originally commissioned by First Data, now Fiserv, evaluating digital goods and services market and how to buy rates differ by region and demographic group, querying more than 6,000 consumers across 15 countries and four different age groups - Linksters (18-23) , Socializers (24-34), MTV Generation (34-54) and Maturists (55 +). Within the study, digital goods and services is defined as on-demand services, digital subscriptions, digital media, computer software and mobile apps.
"Nandan Sheth, head of Global Digital Commerce, Fiserv, said," The rise of digital goods and services is ample opportunities for businesses to grow and enhance customer loyalty. " "This is a seamless, across-the-clock, multi-channel payment system."
On-demand services, including ridesharing, restaurant delivery, business services and home-sharing, are the fastest growing purchase category among all age groups. The average consumer made 31 12 months, and 71% of consumers who made on-demand service purchases this year spent on the same year.
57% of consumers will stop shopping at an online merchant or cancel a digital service entirely after a negative purchasing experience.
"As businesses expand their digital approach to represent a true omni-channel strategy, consumer experience remains paramount," said Sheth.
Sharing is the most commonly purchased on-demand service, although with a high degree of variation by country. Malaysia led on the average number of times consumers (13.17) over the last 12 months, while North America neared six (5.98). Ridesharing is most commonly used by Socializers (11.8 times per year), who use ridesharing nearly twice as often as Linksters (7.3) and the MTV Generation (6.4), and over three times as often as Maturists (3.6).
Restaurant delivery is the second most popular service, and despite the growing convergence Brazil led all countries in the average of times consumers utilized restaurant delivery services (10.2) over the last months 12 months, while Malaysia ranked sixth (8.26) and North America came in tenth (4.73). The MTV Generation used restaurant delivery service, more frequently than ridesharing in the previous year, and the inverse is true for Linksters.
Digital Media Subscriptions
Across all age groups, consumers have a average of nearly two (1.96) digital media subscriptions, with video streaming the most popular type of average subscription overall - 47% of consumers globally reported having at least one video-streaming service subscription. North America, Scandinavia, and Australia have the highest average number of video-streaming subscriptions per person, while India, the Philippines, and Poland have the fewest. Music is the most popular digital media type subscription among consumers, as 34% of consumers are subscribing to music-streaming services. Brazil, Argentina and Mexico are the top three countries for downloading and streaming music.
While the gaming category, which includes the purchase of mobile, console and computer-based games and in-game content, traditionally has and continues to skew young, is still a thriving market among all age groups. This is thanks in part to new advancements in mobile, streaming, payment and artificial intelligence (AI) technologies.
In the past 12 months, Socializing led in gaming purchases, with 51% having made a purchase, with Linksters coming in second (45%), followed by the MTV Generation (36%) and Maturists (13%). Regionally, consumers in Argentina, Germany, and Brazil made the most gaming purchases over the last 12 months, while consumers in Poland, Scandinavia, and the UK purchased the least frequently.
Other Facts: At a Glance
- Socializers are number one when it comes to purchasing digital goods, with 57% having made a purchase in the previous year, followed by Linksters at 49%. Socializers are key purchasers of home-sharing and business rental services, and all-related gaming things.
- Common payment methods for Linksters includes debit cards (46%) and online / mobile pay (45%); Linksters are also the most likely to use cash. Socializers' common payment methods includes: online / mobile pay (58%), debit cards (53%) and credit cards (46%).
- MTV Generation is the fastest growing demographic in India, Mexico and Argentina. The fastest growing purchase category among the MTVs Generation is on-demand, and the most purchased non-physical goods includes online gaming, online news and magazine subscriptions, meal or grocery delivery services, paid podcasts, subscriptions and music or video streaming subscriptions.
- Maturists might be the least frequent purchasers of digital goods overall, but they are the most frequent purchasers in rural and urban areas, especially in India (39%) and Poland (41%). 77% said they were important or very important. Despite these security concerns, they are the most likely to store their payment information online.
In May 2019, First Data, now Fiserv, commissioned Forrester Consulting to evaluate the nonphysical / digital goods and services market and how purchase rates differ by region and demographic. Forrester conducted an online survey of 6,115 online adults ages 18 + to explore this topic. In this study, Forrester looked at online segments from 12 countries / regions: Australia, Argentina, Brazil, India, Mexico, Malaysia, North America (US and Canada), the Philippines, Scandinavia (Denmark, Norway, and Sweden), and the United Kingdom. The organization also examined four different age groups: Linksters (ages 18 to 23), Socializers (ages 24 to 37), MTV Generation (ages 38 to 53), and Maturists (ages 54 +).
The Global Rise of Digital Goods and Services (White Paper) - https://fisv.co/2m2cT18
Fiserv, Inc. (NASDAQ: FISV) aspires to move money and information in a way that moves the world. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and the Clover ™ cloud-based point-of-sale solution. Fiserv is a member of the S&P 500® Index and the FORTUNE®500 and is among the FORTUNE Magazine World's Most Admired Companies®. Visit fiserv.com and follow on social media for more information and the latest company news.
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