More than a third of Portuguese are confident that their financial situation will improve in a year’s time, while 26% see the scenario worsen by then, according to the survey. Pulse for money management from the payments company Klarna, which analyzed the top habits of consumers in 17 countries in the first quarter of 2023. In fact, Portugal is the sixth most optimistic country, positioning itself ahead of markets such as Spain (35%), France (26%) and Italy (24%).
Following what is also a global predisposition, the good outlook is particularly noticeable among younger people, with 67% of people born in the second millennium – Gen Z – saying they are positive about the future of their finances. On the other hand, three out of ten baby boomers the Portuguese, still fearful of inflation and possible effects of rising interest rates, think their bills will tend to get worse.
“We have seen a dramatic change in consumer behavior in the marketplace. Today, buyers, especially younger ones, are more informed, more digital, and using different platforms to manage their personal finances, which in itself contributes to this optimism because they have more control over their financial situation,” said Alexandre Fernandes Ribeiro, Klarna’s country manager for Portugal, in an interview with Dinheiro Vivo.
The Portuguese’s positive view on this issue may also be related to the fact that 83% admit to consistently saving money, above the global average. According to the fintech analysis, national consumers save an average of 11% of their income, with this number rising to 19% when only Generation Z is considered, falling to 9% when only the baby boomers. To control bills and avoid spending, about 72% – especially the younger generations – admit to having prepared a budget, in whole or in part, before spending their paychecks.
Of those who save a lot, 49% keep their savings in the bank account and only 28% invest in financial products. These consumers prefer investment funds, in which 43% invest their money, shares (41%) and government bonds (29%), of which savings certificates are an example. The study also notes that the Portuguese are more receptive to investing in cryptocurrencies (27%) than the global average (16%).
relationship with money
In an increasingly digitized society, paying cash is no longer the preferred method of consumers, this choice is diversifying into other forms. Some 52% of the Portuguese respondents in the Klarna survey indicate that they prefer to pay for their expenses with a physical payment card, while 22% opt for a payment method via smartphone, with an emphasis on the connection of generation Z (35%) and the reluctance of over 60 years (10%). Physical money, in turn, is still used by 21% of the population, the analysis estimates.
“The way we consume is completely changing, especially among young people. Five years ago we couldn’t imagine paying with a QR code at a physical point… And this is what is happening today, with MB Way,” notes Alexandre Fernandes on Ribeiro.
When asked about the prospects for the payment market, the manager says that he has no doubts: “Cash will become obsolete. New methods, especially mobile and contactless, will replace the physical card and cash”. However, the country manager points out, “the digital card will always be around, because we need to somehow connect our bank accounts to the real world, but maybe we are talking about a solution that is not a physical card, but linked to the cell phone number, for example”.
As for the amount of money consumers carry with them on a daily basis, the Pulse for money management concluded that it differs per country. Although with a difference of 81 dollars compared to the United States, leader in this respect, Portuguese consumers carry about 117 dollars (about 107 euros at the current exchange rate) in their wallets to cover daily expenses, love Klarna. This value is above the global average of $93.
In terms of national surveys, the monthly average is 3.1. The fact that you have money in your wallet proves, according to that official, that “the Portuguese industry is not prepared to cashless“, requiring consumers to “always have some cash with them to pay in restaurants, for example.”
The same is not happening in banking, an “increasingly digitized” sector, where the home banking73% of consumers check balances, 62% make transfers and 64% pay bills.
The study surveyed 1,000 consumers in each of the countries, in a global sample of 17,000 people.
Mariana Coelho Dias is a journalist for Dinheiro Vivo
Source: DN
