Welcome to Klarna’s Money Management Pulse!

Technology has changed the way people manage their everyday personal finances. Checking your account balance is no longer a chore, and payments happen in the blink of an eye without any physical cash transactions. Yet some habits remain, and preferences shift heavily across generations and the globe.

In this report, you’ll find a pulse check on money management habits in a selection of countries around the world.

Happy exploring!

Methodology.

Insights from Klarna’s consumer research, conducted in cooperation with Nepa across 18 countries (the US, UK, Australia, Germany, Austria, the Netherlands, Belgium, France, Sweden, Norway, Finland, New Zealand, Italy, Poland, Portugal, Spain, Czech Republic, Greece). The research is conducted quarterly and always includes a minimum of 1,000 respondents in each country.

In total, 19,293 consumers participated during Q2 2023 (April-June). The sample sizes are nationally representative, naturally including both Klarna users and non-Klarna users, and have been selected by research agency, Nepa.

18 countries

19,293 consumers

High interest in personal finances.

It’s a pattern seen across generations. However, Millennials express the highest interest—which correlates with their frequent interactions with financial services.

Millennials high interest for personal finances stands out.

The difference between Millennials and other generations is greater than the gender gap in all countries. As a matter of fact, across the 18 countries featured this report there’s only three where another generation expresses a higher interest.

Millennials

have the highest overall interest in personal finances compared to younger and older generations.

Gender

has a bigger impact than age in many countries. Men express a higher interest in personal finances than women, and the gap is highest in Sweden. The only countries where women express a higher interest than men are Norway, Portugal, and Greece.

Money is still a delicate topic.

Many underline the importance of being able to talk about personal finance and ones economic situation with others for the same reasons we talk about most things; to ease our minds and get input from others. Turns out most people are comfortable talking about money, but many still avoid the subject.

Most people feel comfortable talking about money.

On a global level, most people feel comfortable talking about money, but there’s still a significant group that doesn’t.

1 in 2

Almost every other person (47%) state that they feel comfortable talking about money.

62%

of Swedes feel comfortable talking about their personal finances and money with friends and family. That is more than twice as many Finns that feel comfortable doing the same (30%).

..but many still avoid the subject.

When asked how often people talk about money with friends and family, most people state that they do it at least once a month, one in four even claim that they’ve talked about it during the last week – but at the same time, there is a equally big group that never talks about money with others.

1 in 4

never talks about money with other people.

1 in 3

Spain and the Czech Republic represent the countries with the biggest share that avoids to talk about money with others. Every third person in the respective countries state that they avoid the subject.

We turn to social media for information on personal finance.

In a time when social media influences many aspects of most people’s lives, it does not come as a surprise that social media is a common source that people turn to for information on personal finance.

1 in 5

turn to social media for information about personal finance.

40%

of Americans look at social media for information about their personal finances. It’s the biggest share out of all countries.

Cash is no longer king.

Our increasingly digitalised society also means preferences for payments in physical stores are evolving. In fact, only 2 out of the 18 countries covered in this report have a population preferring cash.

Innovation introduces new habits.

Gen Z’ers’ preference for digital devices like smartphones and smartwatches means neither hard cash or physical cards soon wont have a natural place in their pockets. And with smartwatches on the rise, and biometrics on the horizon, much is likely to change in this space in the near future.

Physical cards growing old

The generation’s preference for physical cards grows bigger with age, while the preference for cash splits relatively evenly in comparison.

Digital overtaking cash

There’s a distinct generational differentiation between physical cards and digital devices like smartphones and smartwatches. Gen Z’ers have a higher preference for paying with smartphones or smartwatches than with cash in all countries, with just one exception.

Mobile phones > cash.

The smartphone revolution has enabled new and innovative means to pay, and digital means of payment have become preferred over cash on a global average.

14 out of 18

More people now prefer mobile phones over cash for in-store payments in the vast majority of countries featured in this report.

Contrasting payment preferences across countries.

The difference in payment preferences gets even clearer when the countries are placed next to each other in the index.

Cash remains royal in DACH

Germany and Austria stand out with a high preference for cash compared to the other countries. On the other side of the coin, consumers in Nordic countries seldom use cash and prefer physical payment cards to a much higher extent.

Cash in pocket.

How thick a shoppers’ wallet is varies across countries, and it’s clear that inflation and increased cost of living has had a significant impact on the amount of disposable cash during the past quarter—despite the fact that digital payments has continued to rise in popularity.

$203 is the average amount of cash in Americans’ wallets, the most out of any country. That’s twice the global average and 4 times the amount found in Swedish wallets.

Cash withdrawals.

Until alternative payment methods become universal, cash will still be relevant. And there will be a need to access funds before payment can be made.

Cash withdrawals are naturally more frequent in countries with a higher preference for cash. Still, they don’t scale with preferences—which may indicate unplanned withdrawals for consumers who would have preferred to pay otherwise.

Younger generations tend to withdraw cash more often despite preferring to pay with digital devices, indicating that availability is not meeting the demands.

3x

The average American withdraws cash more than 3 times as often as the average Swede.

Digitalization is changing the way people bank.

All over the world, well-established banks are closing down their physical banking locations as consumers increasingly interact with their funds digitally. At the same time, neo-banks are challenging incumbents with a digital-first approach for specific banking services.

Innovation introduces new habits.

The smartphone revolution puts the bank office in your pocket, accessible at all times. Everyday financial services moved from physical offices to personal computers a long time ago, and in most countries they have continued to transition from computer browsers to mobile apps.

5 out of 5

It’s more common to use a mobile app for 5 of the most frequently recurring financial services.

Mobile banking on the rise.

New and innovative mobile apps are offered by both the established banks and the challengers. Meanwhile, consumers have become increasingly tech-savvy.

Mobile and tablet

usage for financial services is generally trending upwards worldwide. This is especially true for activities such as checking one’s account balance and money transfers. Meanwhile, the usage of computer browsers is trending downwards across the world.

Digital banking around the world.

Thanks to the increased availability of innovative digital solutions, higher tech-savviness, and raised interest in personal finance—the way people bank is changing. Still, the pace at which it’s all evolving varies across demographics.

All generations except Baby Boomers

are mobile first, using apps and browsers on mobile devices. Baby Boomers more often use computers to access banking services.

Younger generations interact with banking services at a higher frequency.

Mobile banking increases accessibility to services, enabling less financially experienced consumers to retain better control over their money.

Americans

interact with financial services more often than others, across all activities measured.

Younger generations

use financial services more often, especially for transferring money and managing their savings. The youngest people in the US and Spain manage their savings twice as often as their peers in Greece, Czech Republic, Finland and Austria.

Budgeting made simple.

Budgeting doesn’t have to be a headache. With the help of digital tools, consumers can easily take control of their finances, save money, and track expenses to keep their spending in check.

Budgeting habits.

Younger generations are more likely to establish a budget before spending their income. This habit helps them achieve financial stability and avoid overspending, ultimately leading to a more secure financial future.

3 out of 4

Gen Z’ers and Millennials set a budget.

Keeping their spending in check.

The vast majority of consumers already use, or want to use, a mobile app to manage their spending. With easy access to budget tracking and expense monitoring, these apps are becoming an essential tool for those seeking financial control and stability.

3x

The younger generations are three times as likely to already use a mobile app to help them manage their spending.

Budget-savvy consumers seek innovative services.

Consumers are eagerly embracing new solutions that help them take control of their finances. As more and more consumers prioritize financial control, the emergence of smart digital money management features is expected to revolutionize the way people approach saving, making it easier and more accessible than ever before.

Attitudes to savings.

When it comes to saving money, differences are not as evident in the share of income saved but in what people choose to do with that money. The most significant differences are found in attitudes around investing money to grow funds with the risk of seeing them decline. Here’s how consumers all over the world go about their savings and investments.

8 out of 10 save money.

Across all countries and generations, the vast majority of consumers are consistently saving money.

81%

save money from their income in the wider global population. Gen Z’ers (87%) and Millennials (89%) are the most frugal generations.

13%

is the average share of income saved. Gen Z’ers (16%) and Millennials (16%) allocate money for savings to the highest extent.

Save in a bank account. Or invest.

The attitudes towards utilizing various investments to grow savings or keep money in a bank account are shared across generations. But not across countries.

Gender

has a bigger impact than age, and men invest at a higher rate than women in all countries except for in the US.

Country of residence

has an even bigger impact. The difference between the share of the population saving money in bank accounts and those investing is highest in the UK, France, the Netherlands, and Greece.

Stocks, bonds—or cryptocurrency.

There are numerous ways to invest for those willing to do so, each with its potential upsides and risks.

Stocks

are the most popular form of investment in every country except Germany, Austria, France, Italy, Sweden and Greece, who instead prefer mutual funds and ETF’s.

2x

Men are twice as likely to invest in cryptocurrencies than women.

Environmentally sustainable investments are in-demand.

Growing money—while promoting planet health. The majority has considered investing in companies with an environmentally sustainable profile.

1 in 2

have actively chosen to invest in environmentally sustainable companies, and 1 in 3 have considered it but not yet done so. Only a minority say that they choose the investment product that will yield the highest returns, regardless if they are sustainable or not.

Saving for a rainy day—or a sunny place.

The most common reasons for saving differ across generations, and depending on where you live.

2x

Baby Boomers are more than twice as likely to be saving money for the purpose of having a buffer for unforeseen expenses compared to Gen Z’ers.

6x

Gen Z’ers are instead primarily saving to afford a vacation or house or apartment as a primary residence. They are 6 times more likely to do that compared to Baby Boomers, 3 times compared to Gen X’ers and slightly more likely than Millennials, who represent the generational tipping point between primarily focusing on building a rainy day fund and entering the housing market.

A bright future.

People across the world are optimistic about their future financial outlook—and more people believe they will be in a better place in the near future.

Most have a positive outlook.

And it’s especially the young who believe their financial situation will be improved.

And that’s that.

Klarna’s Money Management Pulse insights are updated quarterly, so stay tuned for future updates.

Thirsty for more knowledge?

Make sure to check out the other reports that are available at Klarna Insights!

Welcome to Klarna’s Shopping Pulse!

3 years after the pandemic, an event that accelerated the digital transformation with unprecedented pace, shoppers continue to turn online, having formed new habits that persisted beyond restrictions and lockdowns. Many retailers have pivoted to evolve their online presence to meet new shopper expectations. But does this mean physical stores are irrelevant? Not at all. Our research shows physical stores still play an essential role for shoppers. That said, many people anticipate they will shop online even more often in the future.

In this report, you’ll find a pulse check on shopping habits worldwide.

Happy exploring!

Methodology.

Insights from Klarna’s consumer research, conducted in cooperation with Nepa across 18 countries (the US, UK, Australia, Germany, Austria, the Netherlands, Belgium, France, Sweden, Norway, Finland, New Zealand, Italy, Poland, Portugal, Spain, Czech Republic, Greece).

The research is conducted quarterly and always includes a minimum of 1,000 respondents in each country. In total, 19,293 consumers participated during Q2 2023 (April-June). The sample sizes are nationally representative, naturally including both Klarna users and non-Klarna users, and have been selected by research agency, Nepa.

18 countries

19,293 consumers

150m consumers

500,000 retailers

Online shopping data.
Insights from Klarna’s shopping data. Klarna serves more than 150 million consumers and 500,000 retailers.

Digital transformation in retail.

Online shopping has accelerated with unprecedented pace over the past couple of years. And there are no signs of the digital transformation slowing down. Shoppers’ preferences for online shopping continue to increase.

Online shopping continues to rise.

Shoppers globally are growing increasingly fond of online shopping. Many retailers continue to step up their digital offerings and make their online offering more appealing. Younger generations prefer the online shopping experience while their older peers are trending in the same direction as they grow increasingly tech-savvy.

The chart illustrates consumers’ mindset regarding the extent they prefer to shop online and in physical stores.

Online shopping

is preferred over physical stores by the majority in the US, UK, Germany, Sweden and Italy.

Rapid online growth

All countries covered in this report have increased their online shopping preference since the tracking started, and the aggregated global value increases steadily quarter over quarter.

If the current trend continues, the global index will shift from mostly in-store to mostly online during 2023.

Where shoppers would do most of their shopping if they could choose freely.

The charts below show how shoppers in each country would choose to split their shopping between online and in-store. The remaining population has a neutral preference.

Where shoppers are currently shopping.

Physical stores are still the norm and consumers still visit them more frequently despite the growing preference for online shopping.

While some retail categories are shopped more often online, physical stores still see certain product types are bought more often in person. The biggest differences are found across some of the most commonly bought categories, indicating an opportunity for disruption, as online shopping’s main drivers are convenience and the ability to save time.

The charts below show the percentage of shoppers in each market who have shopped online and in physical stores respectively at least once a week – and what categories have been shopped on a monthly average.

Traditional offline categories ripe for disruption.

Online shopping means people can access offers from all over the world, regardless of whether they are in a major city or the countryside. Still, some products appear more available than others.

The chart illustrates consumers’ mindset with regards to the extent they prefer to shop online and in physical stores.

Rapid online growth

Children products and Clothing & Shoes have had the biggest increase in online shopping preference over the past two years.

Digital disruption

Groceries, Pharmaceutical products, and Home & Garden, which are the most preferred categories to shop in physical stores, have steadily increased their online shopping preference over the past 2 years.

Attitudes towards online and physical stores.

Shoppers’ choice heavily depends on whether they are looking to save time and money—or whether they are looking for better social interaction and customer service.

Younger generations think they get better social interaction online to a higher extent. This correlates with being more likely to purchase items seen on social media.

Saving time & money

are the two main perceived benefits of online shopping.

Better social interaction & service

are the two main perceived benefits of in-store shopping.

Bridging the gap between the digital and in-store shopping experience.

The vast majority of consumers would find it useful to be able to speak with store clerks or product experts when they shop online to get real-time assistance and guidance while making their purchase decisions. A bit like having your very own personal shopping assistant at your fingertips, providing the same level of service you would expect in-store.

Technology investments are a must.

Today’s shoppers are looking for innovative solutions that give them a better shopping experience. These are the main focus areas for online and physical stores, according to shoppers themselves.


Frictionless payments

is the most wanted improvement across all countries—both online and in-store.

Personalized service and product recommendations

are next on the wishlist, followed by a seamless transition between online and physical stores.

Virtual and augmented reality (VR/AR)

is more anticipated for online shopping than in-store.

Online shopping habits.

Online shopping has evolved into an integral part of retail; it has become a natural part of the everyday life of consumers. Data from Klarna shows when and where shoppers all over the world shop and how their favorite products shift across regions.

The online shopping map.

Select a country in the list below to see where people shop the most online per capita, where online shopping is growing the fastest, and how the most commonly bought products shift across regions. The data is from January 1 – March 31, 2023.

The index for “Favorite Products” is calculated in relation to the national average, and does not necessarily reflect the products that are most often bought overall—but most often in comparison with other regions in the same country.

An average online shopping day.

The most prominent perk of shopping online is how it can be done any time, from any corner of the world. It can be both a time saver and a convenient way of getting access to products not in stock in your local physical store. Most online purchases take place late in the evening, often in the comfort of shoppers’ own homes.

The chart below illustrates how purchases are distributed during an average day. The data is from January 1 – March 31, 2023.

Mornings

are the most popular time to buy for older generations. It’s also the peak hours for desktop computers.

Evenings

are the most popular time to shop online in most countries. And this is when mobile shopping increases the most.

Night time

is when the share of mobile phones increases further and consumers, to a higher extent, opt for payment methods that don’t require them to type in physical card credentials.

An average online shopping week.

While the way shoppers distribute purchases during the day is universal, the most common day to shop varies much more clearly across countries.

The chart below illustrates how purchases are distributed during an average week. The data is from January 1 – March 31, 2023.

The pandemic outbreak

immediately caused a shift in consumption patterns all over the world, temporarily making the share of purchases during weekdays. This effect was short lived, and shopping patterns soon returned to normal with most purchases taking place late evenings.

Fri-yay!

The most preferred day to shop in the US is Friday.

Evolving payment preferences.

Payments are a fundamental part of the shopping experience that continues to evolve with emerging preferences driven by technological innovation.

The rise of Buy Now, Pay Later.

Shoppers all over the world are turning to Buy Now, Pay Later to an increasingly higher extent. In fact, there is only one country featured in this report in which shoppers prefer credit cards over Buy Now, Pay Later.

17 out of 18

The preference for Buy Now, Pay Later is higher than credit cards in 17 out of 18 countries. The only country in which most shoppers would opt for a credit card over BNPL is the US, and it’s close.

Try before you buy.

Shoppers think that being able to check the goods and pay after they have decided if and what to keep is the main benefit with BNPL. No physical store would require shoppers to deposit a payment before they touch, feel, and try the goods, and only reimburse their shoppers a few bank days later if they didn’t end up buying it. With that in mind, it’s not surprising that shoppers turn to retailers that bridge that gap in the online shopping experience—and enable them to turn their living rooms into fitting rooms.

Almost 1 in 2

of global shoppers prefer to pay for physical goods after the delivery has arrived.

80%

would be more positive towards buying from an online store that offers the possibility to get the products delivered before having to pay.

Paying later as a security measure

Feeling safe is one of the most important things for online shoppers. When asking people what makes them feel safe when shopping online, known retailers and payment services top the list – however, almost every other person also considers the possibility to pay efter receiving the goods an important security measure. Something both authorities and fraud experts agree with.

35%

feel safer when the online store offers the possibility to pay after the delivery arrives.

37%

choose to pay after they have received the goods to feel safer when shopping at a new online store.

Sustainability-minded shoppers.

A significant share of shoppers are looking for brands and retailers to act in a more sustainable way. Adhering to this calling can boost businesses from compliance to competitive advantage.

Sustainability-minded shoppers actively seek out brands and retailers that share their values.

The importance for brands and retailers to act in an environmentally sustainable way is deemed as important across generations. Millennials are however over-represented when it comes to everything from taking the environmental impact of delivery options into consideration when shopping online, to seeking out brands that are ethical and sustainable to a higher extent.

1 in 3

consider it important that brands act in an environmentally sustainable way.

1 in 4

actively seek out brands that are ethical and sustainable.

Top priorities.

The majority of shoppers that take environmental impact into consideration are looking for information that helps guide their purchase decision, including both environmental and social impact of the business.

2 in 5

want retailers to have fair labor conditions across their supply chains and use recycled or sustainable material in their production.

The product categories where we look for sustainable options.

It’s apparent that sustainable options is of different importance depending on what we are buying. Most people think it’s most important to consider sustainable options when shopping for clothes and shoes, electronics and groceries – but not as important when looking for jewelery or erotic products.

29%

of greek shoppers are looking for sustainable options when shopping for beauty products, that is almost twice as many compared to the global average (16%).

1 in 2

Finns look for sustainable options when shopping for electronics, to compare with the global average of 39%.

Social shopping on the rise.

Social media, influencers and social shopping solutions have increased engagement, discovery, and more informed purchasing decisions—particularly among younger generations.

Digitalization of shopping.

The shopping discovery path is shaped in different patterns across countries and generations but one common unifying factor is the tendency to rely on digital channels to an increasing extent.

Followers become buyers.

On average, 39% of shoppers have purchased a product after seeing it on social media. And more than half of them did it directly from the platform.

Social channels to shopping discovery.

After discovering it on social media, purchasing a product is becoming common in all consumer groups—and especially among younger generations. These are the type of accounts that have the highest chance of inspiring shoppers.

Influencers

have a bigger impact than retailers on Gen Z, and the opposite is true for older generations.

Retailers

have a higher impact than influencers in most countries. The Netherlands, Belgium and Poland being the only exceptions.

Brands

have the highest following on a global average.

Social media climbers.

Social media has made it easier than ever to discover new trends and items. Shoppers find both inspiration and shopping opportunities.

TikTok

is more popular than Facebook for Gen Z in every country, with the Czech Republic being the only exception.

Facebook, Instagram and Youtube

are the most popular platforms for Millennials with some local differences.

Facebook

is the overall most popular platform for Gen X’ers and Baby Boomers.

Static images > video content.

With the rise of social media and the content development that has followed, people have become more and more accustomed to consuming and shopping video content, yet static images are still the preference.

69%

of global shoppers prefer to shop static images over video content.

Benefits of video content.

Those shoppers who prefer video content think that the main benefit of shopping from video content compared to static images is that they get a better understanding of how the product fits and/or functions and helps them make a more informed purchase decision.

1 in 2

think that video content gives them a better understanding of the product than static images.

Shop smarter with price comparisons.

The thrill of finding a great deal is a feeling that transcends cultures and borders. With the rise of digital retail, bargain hunting has been revolutionized, giving consumers unprecedented access to price comparison tools that allow them to find the best possible deals.

The power of price comparison.

Price comparison is a widely adopted practice by consumers globally. The rise of online shopping and smart shopping services has made it even more accessible to compare prices across retailers. It’s a crucial tactic for making informed purchasing decisions and getting the most value out of every dollar spent.

95%

of consumers compare prices, and the majority (55%) do it often.

The modern way to hunt for bargains.

Gone are the days of physically searching for bargains. The digitalization of retail has revolutionized the way consumers hunt for deals, making it easier and more convenient to compare prices across different retailers. By leveraging technology, consumers can save both time and money when shopping, all from the comfort of their own homes.

Online

is the most popular way to compare prices across stores across all markets.

Sweden

is the only country where consumers use price comparison services more often, instead of browsing online stores to compare prices.

One app to compare them all.

In today’s world of online shopping, consumers are looking for ways to save both time and money. These are the features that consumers would want in an app that allows them to compare products and prices across multiple online stores, all from the convenience of their own device.

88%

want to compare prices across retailers.

A scattered delivery experience.

Along with the evolution of online shopping, the delivery experience has evolved with it and the number of delivery options have increased. However, across almost all markets, many shoppers still consider the delivery experience to be somewhat scattered with room for improvement. The need to gather information about all deliveries in one place is the biggest pain according to consumers.

Home delivery is preferred.

When asked about preferred delivery options, the majority of global shoppers agree that delivery to the home or workplace is their number one choice. But preferences between different countries differ which is probably due to local delivery infrastructure and the availaibilty of delivery options in the different countries.

66%

want their online purchase to be delivered directly to their home or workplace.

x2

Twice as many in the Nordic countries prefer to get their purchases delivered to a grocery store or postal office compared to the global average.

1 in 2

polish shoppers prefer to pick-up their deliveries from a unmanned parcel box, that is five times as many as the global average (10%).

The delivery experience is scattered.

Shoppers express a desire for a more streamlined delivery experience when shopping online. Many find it a hassle to manually having to search for information about their deliveries in different places.

1 in 4

think that the biggest pain point when it comes to online deliveries is that they have to manually search their email inbox for confirmation and tracking numbers.

A smoother delivery experience.

To solve for some of the main pain points that shoppers currently experience with their deliveries when shopping online, a majority would like to gather all their deliveries in one place.

83%

would like to be able to track all their deliveries in one place.

Mobile shopping online and in-store.

As smartphones and tablets continue to take screen time from computers, mobile devices are expected to play a central role in the continued digitalization of retail.

Mobile shopping is now the most popular way to shop online.

Preference for mobile has now overtaken shopping on other devices and is now the most preferred device for online shopping, before computor and tablets.

Increasing mobile preference

All countries that had a recorded preference below 30% in 2021 have shown a clear trend for increasing mobile preference at the expense of computers. Today, no country has a mobile shopping preference lower than 30%.

Majority of mobile shoppers

Only 6 out of 18 countries have a majority of shoppers with a higher preference for computers than mobile devices.

The in-store shopping journey begins online.

The digital shopping revolution doesn’t only mean that people are shopping more online. Online research, also called “webrooming,” plays an important role throughout the in-store shopping journey. For the majority of people, a trip to the mall starts before they arrive.

The chart below illustrates the percentage of in-store shoppers who usually research online before shopping in physical stores.

83%

are sometimes (or often) researching online before they go in-store, out of which:

24%

do it often.

Smartphones have forever changed the in-store shopping experience.

Even when shoppers are physically in-store, they are also online, using their phones to compare competitive prices and offers and to check product reviews and testimonials to make sure they have found the right product.

The chart below illustrates the share of in-store shoppers who say they use their smartphones to research products when shopping in physical stores.

72%

are sometimes (or often) using their smartphones in-store, out of which:

22%

do it often.

A year from now.

Over the past 2 decades, online shopping has pivoted from something for early adopters and enthusiasts to the preferred way to shop for people all over the world. Technological innovation will continue to marvel and excite, retailers will continue to improve their digital offering, and the digitalization of retail will continue to shape the future of shopping.

Predictions for the future.

There’s still a general belief that the majority of shopping will be done in physical stores in a year’s time—but preferences are quickly shifting.

This chart illustrates the share of shoppers believing they will make the majority of their shopping online or in physical stores respectively.

And that’s that.

Klarna’s Shopping Pulse insights are updated quarterly, so stay tuned for future updates.

Thirsty for more knowledge?

Make sure to check out the other reports available at Klarna Insights.

Holiday budgets.

The pandemic accelerated digital innovations and now shoppers are online more than ever before. Additionally, over the past 6 months, millions of consumers have been affected by price inflation and thus have adapted their spending habits accordingly.

In this report, we find out what these changes in behavior mean for this year’s holiday season. Read on to learn about consumers’ plans for creating budgets and getting more out of their money during the final months of the year.

Enjoy!

Methodology.

Insights from Klarna’s consumer research, conducted in cooperation with Nepa across 17 countries (the US, the UK, Ireland, Australia, New Zealand, Germany, Austria, Poland, France, Belgium, the Netherlands, Italy, Spain, Portugal, Sweden, Norway and Finland). The research was conducted during October and November 2022 and includes a minimum of 1,000 respondents in each country. In total, more than 17,000 consumers participated. The sample sizes are nationally representative, naturally including both Klarna users and non-Klarna users, and have been selected by research agency Nepa.

17,390 consumers

17 countries

Holiday budgets.

Creating a budget and sticking to it. Here’s how consumers all over the world are doing it.

Young and meticulous.

Younger generations are more likely to establish a budget before they start spending for the holiday season.

9 in 10

Gen Z’ers have already, or want to, create a budget for their holiday spend. Only 4% of U.S. Gen Z’ers say they don’t have a need for a budget, while…

3 in 10

Baby Boomers don’t believe they need to establish a budget. And this is true for twice as many Swedish Baby Boomers, with 60% saying they have no such need.

Holiday spending.

Over the past 6 months, millions of consumers have been affected by price inflation and thus have adapted their spending habits accordingly. Here’s how it will affect holiday spend compared to 1 year ago

10 out of 17

In 10 out of 17 countries, holiday spending budgets will be bigger compared to 1 year ago.

55%

of consumers will not change their holiday spending budgets, on a global average.

The majority will change the way they spend.

In all countries, the vast majority say recent price inflation will impact the way they shop for the holiday season.

78%

of consumers will change the way they spend for the holiday season, ranging from 67% in Sweden to 89% in Portugal.

Budget-friendly is the name of the game.

Shoppers are looking to hack the holidays by prioritizing shopping for the essentials, embracing sales, and more. It’s also increasingly important to gather input and ensure the person receiving the gift wants it.

1 in 2

will reduce their spend on non-essential items, and choose more budget-friendly options.

1 in 6

will actively try to avoid using their credit cards for holiday spending.

Keeping their spending in check.

The vast majority want to use an app to manage their holiday spending.

73%

would find it useful to have a mobile app that can help them set a budget and track and manage their spending, but only 26% are already using one.

Wait, there’s an app for that?

The smartphone revolution has introduced new technology that empowers consumers to keep better track of their shopping and make more informed choices.

76%

would find it useful to have an app that compares prices across retailers to find the cheapest item.

Evolving payment preferences.

Naturally, payments are a fundamental part of the shopping experience. Yet continual technological innovation means our payment preferences are constantly evolving.

‘Tis the season to ditch your credit cards.

About half of the shoppers who used their credit cards for holiday spending last year ended up paying some form of interest or fee. This year, more than 8 out of 10 will try to avoid credit card debt.

The rise of Buy Now, Pay Later.

Shoppers all over the world are turning to Buy Now, Pay Later to an increasingly higher extent.

According to consumers, the primary benefits of Buy Now, Pay Later over credit cards are avoiding the open line of credit and saving money. Most believe that Buy Now, Pay Later is cheaper compared to credit cards that charge additional fees and interest.

16 out of 17

the demand for Buy Now, Pay Later is higher than credit cards in 16 out of 17 countries.

Why pay interest?

Most people find it helpful to split the payments for holiday gift shopping into equal parts, without any additional cost or interest.

80%

of consumers find it useful to split the payments for holiday gift shopping into equal parts, without any additional cost or interest.

Those that use Buy Now, Pay Later are more meticulous.

There are clear differences when comparing those that have already tried Buy Now, Pay Later to those that have never heard of it. They are twice to have set a budget for their holiday spending and to use mobile apps to keep track it — and three times as likely to know what they will buy during the Black Friday sales.

And that’s that.

Thirsty for more knowledge?

Make sure to check out the other reports available at Klarna Insights.

Welcome to Klarna’s Black Friday & Cyber Monday deep dive!

The pandemic accelerated digital innovations and now shoppers are online more than ever before. Additionally, over the past 6 months, millions of consumers have been affected by price inflation and thus have adapted their spending habits accordingly.

In this report, we find out what these changes in behavior mean for this year’s Black Friday & Cyber Monday sales. Read on to learn more about shoppers’ plans and their expectations in the lead-up to the most intense shopping days of the year.

What’s more, we will continue to update the global shopping insights based on our shopping data so don’t forget to check back in for the latest news on developments this year.

Enjoy!

Methodology.

Insights from Klarna’s consumer research, conducted in cooperation with Nepa across 17 countries (the US, the UK, Ireland, Australia, New Zealand, Germany, Austria, Poland, France, Belgium, the Netherlands, Italy, Spain, Portugal, Sweden, Norway and Finland). The research was conducted during October and November 2022 and includes a minimum of 1,000 respondents in each country. In total, more than 17,000 consumers participated. The sample sizes are nationally representative, naturally including both Klarna users and non-Klarna users, and have been selected by research agency Nepa.

17,390 consumers

17 countries

150m consumers

450,000 retailers

Online shopping data.
Insights from Klarna’s shopping data. Klarna serves more than 150 million consumers and 450,000 retailers.

Online & in-store.

Bargain hunting season has started. Here’s where shoppers are heading and why.

Black Friday shopping no longer requires protective gear.

Many retailers have evolved their online presence to meet shoppers’ increasingly digital expectations. But does this mean physical stores are irrelevant? Not at all. Our research shows that physical stores still play an essential role for shoppers.

That said, many people anticipate that they will shop online more than usual during the hectic November sales. As such, online stores look bound to take an even larger share of the (digital) foot traffic this year.

IRL vs. digital shopping.

The charts below show how shoppers in each country think they will split their shopping between online and in-store. The remaining population thinks they will split it evenly between the channels.

Why are shoppers turning online?

A consumer’s choice of shopping channel heavily depends on whether they are looking to save time and money or whether they are looking for social interaction and customer service.

This helps to explain why shoppers are planning on digitizing their purchases during the biggest (and often most intense) sales days of the year.

74%

think they get lower prices online.

78%

prefer online stores to save time.

In-store with a digital footprint.

Ever been standing between the aisles and grabbed your smartphone to check product reviews or compare prices? You’re not alone.

The in-store shopping journey begins online.

The digital shopping revolution doesn’t only mean that people are shopping more online. Online research, also called “webrooming,” plays an important role throughout the in-store shopping journey. For the majority of people, a trip to the mall starts before they arrive.

81%

are sometimes (or often) researching online before they go in-store, out of which:

27%

do it often.

Smartphones have forever changed the in-store shopping experience.

Even when shoppers are physically in-store, they are also online, using their phones to compare competitive prices and offers and to check product reviews and testimonials to make sure they have found the right product.

70%

are sometimes (or often) using their smartphones in-store, out of which:

22%

do it often.

Planning makes perfect.

Executing the perfect bargain hunt requires proper planning. We found that there is a strong correlation between setting a budget, planning purchases, waiting to make more expensive big-ticket purchases, and expecting to make bargains during the sales days.

Online shoppers are more meticulous.

Shopping online and in the physical world are done differently. Meticulous planning, budgeting, and price awareness are strongly correlated with online shopping. Those who intend to shop in-store tend to make their purchases more spontaneously.

Online shoppers more often:

– know what they’re going to buy.

– wait until the sales to buy big ticket items.

– compare prices between retailers to find the cheapest item.

– try to make larger share of their holiday gift purchases during the sales periods.

Gen Z’ers & Millennials are on it, too.

Younger generations have a clearer idea of how much they are going to spend and what they are going to buy before the sales even get started.

8 out of 10

Gen Z’ers and Millennials will more often compare prices between retailers, and make more of their holiday shopping during the sales period, compared to last year.

The vast majority think they will buy something during the Black Friday sales.

And this is particularly true for the younger generations.

67%

think they will buy something during Black Friday/week, out of which:

25%

are sure they will do it.

Shopping for yourself and others.

Many take advantage of the sales to buy for themselves and for their nearest and dearest. Many shoppers will aim to get a bargain both on products they use themselves and on holiday gifts for loved ones.

75%

will buy something for themselves, while…

72%

will buy for others.

Top gifting categories.

These are the top products consumers are looking to bag for themselves and others ahead of the holidays.

Children’s Products

is the most popular gifting category, while…

Clothing & Shoes and Electronics

are the most popular categories to buy for oneself.

Evolving payment preferences.

Naturally, payments are a fundamental part of the shopping experience. Yet continual technological innovation means our payment preferences are constantly evolving.

The rise of Buy Now, Pay Later.

Shoppers all over the world are turning to Buy Now, Pay Later to an increasingly higher extent.

According to consumers, the primary benefits of Buy Now, Pay Later over credit cards are avoiding the open line of credit and saving money. Most believe that Buy Now, Pay Later is cheaper compared to credit cards that charge additional fees and interest.

16 out of 17

the preference for Buy Now, Pay Later is higher than credit cards in 16 out of 17 countries.

Why pay interest?

Most people find it helpful to split the payments for holiday gift shopping into equal parts, without any additional cost or interest.

80%

of shoppers find it useful to be able to split a payment into equal parts without paying fees or interest, on a global average.

2022 data updates.

Black Friday 2022 takes place on the 25th of November and Cyber Monday on the 28th.

Klarna will continually update this section over the upcoming weeks based on our shopping data.

The online shopping map.

Select a country from the list below to see where people shop the most online per capita, where people are shopping the most during the sales period (compared to an average day), and how the most popular product categories shift across regions.

The index for “Favourite Products” is calculated in relation to the national average in a particular country. It does not necessarily reflect the products that are most frequently bought overall but in comparison with other regions in that country.

The data includes Black Friday, 2022-11-25 full day.

And that’s that.

Thirsty for more knowledge?

Make sure to check out the other reports available at Klarna Insights.

Dreams.

Dreams take many forms. There are the ones when people shut their eyes and nod off to sleep—whether for a brief snooze or a restful evening—and there’s the more aspirational sort. Some dreams see a person take flight and soar high above the earth, and some involve purchasing or acquiring a desired object. 

While Klarna hasn’t yet figured out how to make that dream of you shooting laser beams from your eyes a reality (don’t worry, we’ll get engineers on it!), we are laser-focused on helping shoppers score the dream item they’ve always wanted. 

In celebration of World Dream Day we’ve conducted research including more than 20 000 consumers from across the world to better understand what shoppers dream about (from the literal to the figurative). And based on what we learned we’ve created the Dream Deals Report, exploring shoppers’ dreaming habits and patterns, and their dream purchases and shopping desires.

Methodology.

Klarna research occurred in May 2022, in cooperation with Dynata and across 19 countries (US, Canada, UK, Ireland, Australia, New Zealand, Germany, Austria, Poland, Netherlands, Belgium, France, Sweden, Norway, Finland, Denmark, Italy, Spain, and Portugal). The survey includes a minimum of 1,000 respondents in each country. In total, 20,413 consumers ages 18 to 75 participated.

19 countries

20,413 consumers

Dreams.

First, the literal. With nearly 8 billion people in the world, there is a whole universe of imagination created by our subconscious every day.

This chapter explores people’s actual dreaming habits and patterns, looking at how often people dream, the types of dreams, and the most common themes globally and nationally.

The dreamiest nation is…

Quantifying the number of dreams every day is a herculean task, but when asked how frequently a person can recall their sleeping dreams, the global average comes to 119 days in a year. For those moments during the day when people drift off for a bit, the average number of days with daydreams is 107, making the combined number of total dreams for the average person around 226 per year.

While nighttime dreaming is consistent worldwide, there is a much more diverse frequency for daydreaming connected to the region where a person lives.

For example, people in Ireland are most likely to daydream (145 per year), while those in Poland are significantly more unlikely to do so (43 per year). The difference between the Nordic countries of Sweden (132), Finland (128), and Norway (124), though, is much less pronounced, with a difference of only 8 separating them. And while thousands of kilometers divide the nations, there’s no separation between the people of Australia and New Zealand when it comes to daydreaming.

  • Canadians have the most dreams at night (143) on average, while the US has the most daydreams (141) per year.

  • The Irish have the highest number of dreams (272) per year, counting both night and day.

  • Men and women average the same amount of dreams at night per year (119), while women daydream 13% more over a year.

Daydream believers.

The US has the most average daydreams per year (141), while Ireland is the country with the most daydreams compared to night dreams (+19 more daydreams), and Poland and France are on the opposite side (+63 more night dreams).

Day dreamers

US, UK, Ireland, Australia, New Zealand, Sweden, Finland

Night dreamers

Canada, Germany, Austria, Poland, Netherlands, Belgium, France, Norway, Denmark, Italy, Spain, Portugal

The dreams of youth.

The younger you are, the more likely you will have healing dreams or ones where you dream something that later actually happens, while lucid and recurring dreams seem consistent across generations. On a global average, Gen Z’ers are more than twice as likely to have healing (+145%) and prophetic (+123%) dreams than Baby Boomers.

Highest share of

Healing dreams: US, Canada (24%)

Prophetic dreams: US, Canada, Poland (32%)

Lucid dreams: Spain, Portugal (50%)

Recurring dreams: Sweden, the Netherlands (53%)

Keeping the dream alive.

While everyone has dreams, not every dream gets remembered. About every fourth person occasionally writes down their dreams, but only a few keep a regular dream diary.

The eagerness to recall dreams seems to be a generational preference, as Gen Z’ers (45%) and Millennials (37%) are far more likely to write down their dreams as compared to Gen X’ers (17%) and Baby Boomers (7%).

Most people (60%) say they have researched what their dreams mean, and 1 in 4 Gen Z’ers (24%) do it often.

Would you like cheese on that?

More than a third of people (37%) say they’d actively choose to eat or drink something that would help them remember their dreams better. That’s especially great news for dairy manufacturers, as research shows cheese may help with dream recall. Thanks to their cheese consumption, Canadians (37%) are the most likely to have already remembered a dream. Italians are very willing to try this (53%), making them more than twice as willing as the Danish (25%) to do so and significantly outpacing their American (24%) and European (19%) counterparts.

Dreams of adventure.

As for the most common types of dreams, people often experience exploring nature and seeing distant places, more so than imagining themselves as an athlete, musician, or artist. If you’re experiencing an even more far-out dream, you’re in good company, 1 in 5 people has dreamed about going to outer space.

Distant new places.

  • Women dream more often about exploring nature and seeing distant places on Earth. In contrast, men more often dream about going to outer space. However, the differences are more significant across generations than between genders.

  • 30% of Gen Z’ers have dreamt about being social media influencers. That’s least prevalent in Austria (21%) and most common in New Zealand (40%).

Dreamed I was someone new.

Reflecting their values and interests, Gen Z’ers and Millennials are more likely to dream about quitting their jobs to pursue passions or turn hobbies into careers, or dream about innovating something impactful or innovative for the greater good.

Meanwhile, for people over the age of 40 there seems to be a drastic decrease in dreams overall.

The only consistent dream among all generations is around travel or going on vacation.

Balancing good and villainy.

Dreams where a person becomes a superhero, are more common than dreaming about being the villain in all countries, but there are wide variations in how frequent it is across borders. Spanish people are ten times more likely to dream about being a superhero than a villain, whereas in Finland and Poland, they dream about being a villain almost as often as being the hero.

In a similar comparison, it seems that there is a clear divide between countries when it comes to whether it’s more common to dream about becoming a real person or a fictional character.

The ideal dream purchase.

Having explored what people dream about while asleep, in this section, we explore what shoppers across the world consider to be a “dream purchase.” For many shoppers, there is one (or many!) items out there they have been pining over or admiring from a distance. Some items are more obtainable, others are more aspirational. Either way, we checked in with shoppers on how long they’d wait to make a purchase, how much they’re willing to spend, and more.

What triggers a dream purchase?

In some countries, as many as two-thirds of people have an ideal dream purchase they are looking to purchase. And about half say there is a specific event that would trigger a dream purchase. What that occasion is, varies across countries and generations, but the most common reason seems to be moving to a new residence.

Baby Boomers (20%) are four times more likely to consider retirement a motivator for a dream purchase compared to younger age groups (5%) for whom retirement feels much farther away. On the contrary, at the starting point of working life, Gen Z’ers (20%) are ten times more likely to consider graduation a motivating factor compared to Baby Boomers (2%).

Dreaming for someone else.

Shoppers aren’t only thinking of themselves, approximately half also have a “dream purchase” for someone else. Most often, that someone is a family member or significant other—this is consistent across age groups. However, the younger you are, the more likely you are to be planning to surprise a friend over a family member with their ideal dream purchase.

Defining a dream purchase.

The idea behind dream purchases is something that solves a particular need or opens up new life opportunities, and is consistent across generations. However, younger generations are more likely to consider dream purchases as something to support their hobbies, or that has emotional value.

Open up new life opportunities or solve a particular need?

  • Americans and Australians are more likely to consider a dream purchase to open up new life opportunities. At the same time, Canadians and Europeans are more likely to want something to solve a particular need.

The price is right? Or the time?

More than one-third (37%) insist it’s impossible to put a price tag on what should be considered an ideal dream purchase, and most shoppers (55%) say there is no specific timeframe one has to wait for an item to become a dream purchase.

And the older (and more experienced?) a person is, the more likely they are to believe a dream purchase doesn’t have to come with a specific price tag or that they have to wait to make their dreams come true. However, among those who would put a price tag on a purchase, only 15% say it has to cost more than $5,000.

And for those saying one needs to wait a specific time before an item becomes a dream purchase, it appears people are eager to make their dreams come true, considering purchasing the item in roughly 95 days, or three months, on a global average.

Reasons for a dream deferred.

The top hindrance preventing a dream purchase is cost (62%). Overall, the average time people are willing to wait for a discount for their dream purchase is 134 days, or about 4-5 months. At the same time, 26% of people are willing to wait however long they have to, while 13% say they won’t wait for a discount at all.

Gender, more than age, seems to have a bigger impact when it comes to being patient for a good deal. Women (29%) are more willing to wait as long as it takes compared to men (22%), while Baby Boomers are both twice as likely to wait as long as it takes (36%) and not wait at all (19%) compared to Gen Z’ers (16% and 7%).

The objects of dreams.

One common experience we’ve seen across demographics and borders is people dreaming about something they do not yet own or possess—call it the “Rosebud effect,” in honor of Citizen Kane. Moving from the ethereal to the (potentially) more tangible, for many people, there are also items they don’t yet possess but are considered “dream purchase.”

Dreams about missing items.

It’s widespread to dream about participating in an activity requiring an object you don’t have (imagine skiing without the skis). Another common theme involves owning an item you don’t actually possess when you wake up (like a magic wand that turns random objects into pastries). About half (43%) of people can recall dreams with these ideas. In these dreams, people are most commonly participating in sports or exercise without the proper equipment, or owning unique fashion items. One noted difference, men regularly imagine owning high-end electronics only to wake up and realize it was just a dream.

Lemme upgrade ya.

Half (49%) of shoppers worldwide are currently looking to level up or improve something important to them. Among the genders, men are more likely to be waiting to make purchases for Electronics, Entertainment, and Leisure, and Sports & Hobby, while women favor Clothing & Shoes, Jewelry & Accessories, Beauty, and Home & Garden to a greater extent.

The most popular products to dream about are electronics, but comparing all age groups to each other, the priorities more clearly shifts:

  • Gen Z: Beauty, and Jewelry & Accessories.
  • Millennials: Children’s Products, and Beauty.
  • Gen X: Leisure, Sports & Hobby, and Home & Garden.
  • Baby Boomers: Baby Boomers: Home & Garden, and Leisure, Sports & Hobby.

Kicking up the look.

Among those looking for fashion items, shoes are the top item to level up or replace for both women (49%) and men (50%). Apart from footwear, men want new jeans and jackets, while women prefer dresses and jewelry.

Top of the fashion carts.

  • US shoppers are looking for accessories like hats, gloves, and belts (31%) and jewelry (49%) to a greater extent than in any other country, while in Spain (40%) of people are most eager to level up their swimwear.

  • The greatest differential in priority comes around the desire to buy a new bag with New Zealand (37%) and Germany (7%) in stark contrast.

Leveling up their favorite things.

Hobbies are one of the areas where people are actively looking to upgrade or replace their current items. Overall, about 24% of people on average are looking to do so, with some activities (like making music or learning a new instrument) seeming to attract more dream purchases than others.

Gamers want to level up.

  • More than one-third of people playing computer/video games (35%), and those who make music or are currently learning a new instrument (34%), would like to improve an item they use for that activity.

  • The activities people feel less inclined to level up or replace an item are dancing, yoga, and pilates.

Dreams and DIY activities.

More than one-fourth (26%) say DIY activities like painting, sculpturing, knitting, and crocheting are among the things they like to do the most.

The most popular DIY activity for all generations is painting, except for Baby Boomers who prefer knitting. However, comparing the preferences of all age groups to each other, the preferred activities become more diverse—and so do the things they would like to try the most.

The DIY activities that each generation currently do, and would like to try, the most compared to other generations.

Age groupCurrent favoriteWould like to try the most
Gen ZSculpturingKnitting
MillennialsCalligraphyKnitting
Gen XCandle & Soap makingJewellery
Baby BoomersKnittingPainting

And that’s that.

Thirsty for more knowledge?

Make sure to check out the other reports available at Klarna Insights.

Loyalty cards.

Plastic loyalty cards. Most of us have a whole bunch of them stacked in our wallets or lying around at home and have most definitely been offered to sign up to many more. They promise us discounts, cashback and rewards for being loyal customers when shopping in-store. But there are only so many loyalty cards you can fit into one wallet. How can brands convince consumers to sign up to yet another loyalty program? How is shoppers’ behaviour with respect to loyalty cards changing in the face of the rising popularity of mobile payments?

In this report, we deep dive into the attitudes towards loyalty cards across 19 markets, with responses from 20,000 consumers across the world.

Happy exploring!

Methodology.

Klarna research occurred in May 2022, in cooperation with Dynata and across 19 countries (US, Canada, UK, Ireland, Australia, New Zealand, Germany, Austria, Poland, Netherlands, Belgium, France, Sweden, Norway, Finland, Denmark, Italy, Spain, and Portugal). The survey includes a minimum of 1,000 respondents in each country. In total, 20,413 consumers ages 18 to 75 participated.

19 countries

20,413 consumers

Are there more loyalty cards or wallets in the world?

The retail version of the “doors or wheels” brain teaser could be “loyalty cards or wallets”. If you check the homes and pockets of shoppers across the world, will you find more loyalty cards or wallets?

The majority has more than one.

Many retailers offer incentives and benefits to retain loyal customers and it’s clear they are very popular. While very few shoppers are not tempted by discounts and rewards from their favorite retailers, the vast majority has more than one.

84%

have at least one loyalty card.

68%

have more than one.

Most loyalty card holders use it at least one once a week.

Whether you’re shopping for groceries and everyday essentials, making a dream purchase or have found yourself at the checkout with an impulse buy, reward programs appear to work well as an incentive for using loyalty cards. After all, every penny spent counts towards a return. 2 out of 3 are using a loyalty card on a weekly basis, while 9 out of 10 are using them once a month. An estimate based on the frequency of usage shows that the average shopper uses a loyalty card around 108 times each year.

Overwhelming amounts of physical cards.

Today, despite a massive shift towards digital payments, you are still very likely to find a plastic loyalty card in most shoppers’ wallets. But you are equally as likely to find a shopper who has left one or more of their cards at home, or rejected the idea of signing up to another loyalty program altogether, unwilling to carry another card with them while out shopping.

The wide availability of loyalty programs is overwhelming for shoppers.

Ever been out shopping and been asked to join another reward program? You are not alone. We’ve all been there, stood at the checkout weighing up whether it’s worth signing up to another loyalty program. Is the opportunity to save money great enough? Is it worth having to carry another card with me? With the majority of retailers offering a loyalty program these days, consumers are feeling overwhelmed. This sentiment is felt most strongly by younger generations, while the Baby Boomers are the most open to joining new and a broader number of programs.

Many loyalty cards are left behind by shoppers.

Despite the benefits of discounts, rewards and cash back loyalty programs, the majority of shoppers are not bringing all their loyalty cards with them when they go shopping – which means that they risk losing out on the benefits if caught without their card at the checkout.

52%

52% of shoppers don’t carry all their loyalty cards with them.

Gen Z

are the most likely to leave their physical cards at home, and less than a third (31%) have all their loyalty cards available when they go shopping.

The vast majority of shoppers have rejected a new loyalty card.

There are no downsides to signing up for a loyalty card… or are there? Despite loyalty cards being offered to shoppers for free, with the intention to save users money, consumers still reject signing up to new loyalty programs. Why? For the majority, it comes down to how attractive the reward program is, although nearly one-third have also avoided a loyalty program simply because they didn’t want to add another card to their wallet. What’s clear is for retailers to onboard new loyalty members, the kickback needs to outweigh the hassle of signing-up and committing to another card.

74%

of shoppers have rejected a loyalty card. Gen Z’ers (81%) are the most likely to have done so, while Baby Boomers (55%) are the least.

33%

say it is because they don’t want another card to carry with them – or any plastic cards at all.

Missing out on the benefits.

Have you ever reached the checkout to discover you left your loyalty card at home so can’t collect the reward points? Or that you previously declined one in the same checkout because you didn’t want to carry another plastic card? You are not alone with this either, and you are once again more likely a member of the younger generations.

Is the future of loyalty cards digital?

The shift towards digital has never been faster. Today shoppers are in search of more efficient solutions that help them save time and money when shopping. With smart ways to pay on your phone, loyalty cards will follow a similar transition.

Shoppers are positive towards replacing their plastic cards with a mobile app.

Unsurprisingly, given that shoppers express feeling overwhelmed by the amount of loyalty programs available and as a result, the number of plastic cards they need to carry with them, an overwhelming majority are positive towards carrying them digitally.

73% of shoppers globally are positive about replacing their plastic cards with an app that stores all of their loyalty and rewards programs digitally. While this trend is reflective across demographics, the sentiment is the strongest among the younger generations, with 81% of Gen Z’ers and 82% of Millennials look forward to a future in which they never miss out on potential benefits in the checkout when shopping at their favorite stores – assuming they wouldn’t leave their smartphones at home.

And that’s that.

Thirsty for more knowledge?

Make sure to check out the other reports available at Klarna Insights.

Welcome to Klarna’s Shopping Pulse: New Zealand

Almost 2 years into the pandemic, digital transformation has accelerated, and shoppers have turned online more than ever before. Many retailers have pivoted to evolve their online presence to meet new shopper expectations online. But does this mean physical stores are irrelevant? Not at all. Our research shows physical stores still play an essential role for shoppers. That said, many people anticipate they will shop online even more often in the future.

In this report, you’ll find a pulse check on shopping habits worldwide — and more specifically, in New Zealand.

Happy exploring!

Methodology.

Insights from Klarna’s consumer research, conducted in collaboration with research agency Dynata to a representative sample of 1,085 consumers from New Zealand aged 18-65+ in May 2022.

The data from that survey has been compared with the data from Klarna’s Pulse reports, which are conducted in cooperation with Nepa across 11 countries (the US, UK, Australia, Germany, Austria, the Netherlands, Belgium, France, Sweden, Norway, and Finland). The research is conducted quarterly and always includes a minimum of 1,000 respondents in each country. In total, 11,740 consumers participated during Q1 2022 (January-March). The sample sizes are nationally representative, naturally including both Klarna users and non-Klarna users, and have been selected by research agency Nepa.

12 countries

12,825 consumers, out of which 1,085 from New Zealand.

147m consumers

400,000 retailers

Online shopping data.
Insights from Klarna’s shopping data. Klarna serves more than 147 million consumers and 400,000 retailers.

Digital transformation in retail.

Online shopping has accelerated amid the pandemic. And there are no signs of the digital transformation slowing down. Shoppers’ preferences for online shopping continue to increase despite restrictions lifting in physical stores worldwide.

Online shopping is on the rise.

Shoppers globally are growing increasingly fond of online shopping. Not surprisingly, many retailers have stepped up their digital offerings during the pandemic. Younger generations prefer the online shopping experience while their older peers are trending in the same direction as they grow increasingly tech-savvy.

In-store

is preferred by the average shopper in New Zealand, and only Australians and Austrians favor the in-store shopping experience to a higher extent.

Gen Z & Millennials

favor online shopping over physical stores in New Zealand.

Physical stores are still the norm for shoppers.

Consumers are still shopping in physical stores more frequently than they are shopping online. Preference for online shopping is the highest in the UK, US and Australia.

The charts below show the percentage of shoppers in each market who have shopped online and in physical stores respectively at least once a week.

32%

of shoppers from New Zealand shop online at least once a week – which is on par with the global average.

65%

of Gen Zers in New Zealand shop online at least once a week.

Some categories appear more available online than others.

While some retail categories are shopped more often online, physical stores still see certain product types are bought more often in person. The biggest differences are found across some of the most commonly bought categories, indicating an opportunity for disruption, as online shopping’s main drivers are convenience and the ability to save time.

The charts below show the average percentage of shoppers in each market who have shopped the category online and in physical stores respectively.

Entertainment

is the only product category in New Zealand shopped more often online than in physical stores.

Clothing & Shoes

are shopped about as often online as in physical stores in most countries, but not in New Zealand. This is one of the most frequently bought categories, and younger generations are more likely to have shopped this category more often in physical stores than in online stores unlike most other countries.

Traditional offline categories ripe for disruption.

Online shopping means people can access offers from all over the world, regardless of whether they are in a major city or the countryside. Still, some products appear more available than others.

The chart illustrates consumers’ mindset with regards to the extent they prefer to shop online and in physical stores.

Entertainment and Erotic materials/toys

are the categories most preferred to shop online.

Groceries and Home & Garden

are the categories most preferred to shop in physical stores.

Attitudes towards online and physical stores.

Shoppers’ choice heavily depends on whether they are looking to save time and money—or whether they are looking for better social interaction and customer service.

65%

of shoppers in New Zealand consider physical stores the better overall shopping experience.

Gen Z

disagree with older generations, as 57% say that online stores provide the best overall shopping experience. The main benefits of online shopping according to the youngest is the inspiration (63%) and wider assortment of products (63%).

Technology investments are a must.

Today’s shoppers are looking for innovative solutions that give them a better shopping experience. These are the main focus areas for online and physical stores according to shoppers themselves.

Frictionless payments

Frictionless payments is the most wanted improvement in New Zealand. Personalized product recommendations come next on the wishlist, followed by personalized service and a seamless omnichannel experience.

Virtual and augmented reality (VR/AR)

is currently twice as anticipated for online shopping in the wider population—but Gen Z’ers from New Zealand stand out by expecting investments to the same extent in physical stores.

Social shopping on the rise.

Social media and online live shopping events drive increased engagement, discovery, and more informed purchasing decisions—particularly among younger generations.

Digitalization of shopping.

The path to shopping begins in similar patterns according to countries and generations, with search engines (e.g., Google) being the channel of choice for product search. Consumers tend to visit online stores a second time to research their products.

Followers become buyers.

On average, 29% of shoppers have purchased a product after seeing it on social media. And about half of them did it directly from the platform.

Social channels to shopping discovery.

After discovering it on social media, purchasing a product is becoming common in all consumer groups—and especially among younger generations.

Brands

have the highest impact for shopping discovery in New Zealand, followed by retailers in second position.

Influencers

the younger you are, the more likely you are to follow influencers to a higher extent than retailers. The opposite is true for retailers.

Social media climbers.

Social media has made it easier than ever to discover new trends and items. Shoppers find both inspiration—and shopping opportunities.

Facebook, Youtube and Instagram

are the most popular social media platforms for shoppers in New Zealand.

Gen Z

Instagram and TikTok are the most popular platforms for Gen Zers. Youtube has the most impact with Baby Boomers.

Taking the shopping experience to the next level.

Shoppers are looking for innovative online shopping experiences, and are keen to engage with new types of experiences such as livestream shopping.

2x

Shoppers from the US and New Zealand participate the most in livestream shopping events. It’s about twice as common that they have attended an event compared to the global average.

64%

of Gen Z’ers and 24% of Millennials in New Zealand have participated in a live shopping event.

Benefits of livestream shopping.

The modern online version of teleshopping invites shoppers to engage with their favorite influencers to get inspiration and get access to exclusive discounts.

Real-time engagement

recommendations and enabling consumers to make more informed purchase decisions are the main perceived benefits of live shopping events in New Zealand.

Mobile shopping online and in-store.

As smartphones and tablets continue to take screen time from computers, mobile devices are expected to play a central role in the continued digitalization of retail.

Mobile shopping on the rise.

Many shoppers have changed their purchasing habits as a result of the pandemic, with more now turning to their mobile devices to carry out their shopping needs. Although much of the growth in mobile shopping compared to two years ago is Gen Z and Millennial-driven, this trend is reflective across demographics. And many believe they will use their mobile phones for shopping to a further extent in the future.

65%

of shoppers in New Zealand have used their mobile phone to shop online.

61%

shop with it more often compared to 2 years ago.

60%

think they will use it even more often in the near future, which is more than in most other countries.

More informed mobile shoppers.

While the digitalization of retail has given additional power to the consumer—including more choice and information—it has also made the decision-making process more complex. Drawing price comparisons and searching for deals and promotions are the most common activities people do when shopping online, followed closely by the ability to manage bought and returned items through delivery tracking.

91%

of shoppers in New Zealand compare prices and look for deals and promotions online.

89%

keep track of their deliveries and returns, and the majority use various apps to do so.

Virtual cards on the rise.

Virtual cards, also known as electronic cards, can be used when making online purchases and act as digital replacements to regular physical cards. A virtual card number is unique and temporary, and is generated for each usage to increase safety for both the card holder and the issuer.

The vast majority (91%) of those that have tried it say they would rather make all future online purchases with virtual cards instead of physical cards.

29%

have used a virtual card, and 26% have heard about it.

91%

of those that have used one say they would rather make all future online purchases with virtual cards instead of physical cards.

The modern shopping experience begins online, and leaves a digital footprint in-store.

Online research, also called “webrooming,” plays an important role throughout the in-store shopping journey. The majority of modern day trips to the mall start online.

Smartphones have become ubiquitous for shoppers while they’re in a store. Similar to online, in-store shoppers are also making comparisons for competitive prices and offers, and checking product reviews and testimonials to make sure they’ve found the right product.

In New Zealand, no less than 86% of shoppers start their in-store shopping journey by doing research online – and 69% continue to use their smartphones in-store for additional research before they make a purchase decision.

Evolving in-store payment preferences.

Our increasingly digitized society also means preferences for payments in physical stores are evolving. In fact, only 3 out of the 12 countries covered in this report have a population preferring cash.

Innovation introduces new habits.

Gen Z’ers preference for digital devices like smartphones and smartwatches means neither hard cash or physical cards have a natural place in their pockets anymore. And with smartwatches on the rise, and biometrics on the horizon, much is likely to change in this space in the near future.

Cash

preference is exactly the same (22%) for Millennials, Gen X’ers and Baby Boomers.

Mobile phones

are preferred over cash before the age of 41, and he most distinct generational differentiation is between physical cards and digital devices like smartphones and smartwatches.

A year from now.

Over the past 2 decades, online shopping has pivoted from something for early adopters and enthusiasts into the preferred way to shop for people all over the world. Technological innovation will continue to marvel and excite, retailers will continue to improve their digital offering, and the digitalization of retail will continue to shape the future of shopping.

Predictions for the future.

There’s still a general belief that the majority of shopping will be done in physical stores in a year’s time—but preferences are quickly shifting.

This chart illustrates the share of shoppers believing they will make the majority of their shopping online or in physical stores respectively.

40%

40% of shoppers in New Zealand believe they would shop mostly online a year from now.

70%

Gen Zers believe the same, standing out as the generation thinking they would shop mostly online in the future.

And that’s that.

Thirsty for more knowledge?

Make sure to check out the other reports available at Klarna Insights.