Inflation has U.S. consumers cutting back on costs as consumer prices reach historic highs — but could it also change how they use the internet?
PYMNTS’ most current research shows that consumers who live paycheck to paycheck and struggle to pay their monthly bills are beginning to cut back on their online activity. These cash-strapped consumers used digital travel and commuting apps like Uber and Lyft, micro-mobility apps and homesharing sites 13% less in July than in April, strongly suggesting that many are choosing to hunker down at home rather than spend time outside. They also used social media, messaging apps and even dating sites 6% less than two months prior.
These are just a few of the key findings that PYMNTS uncovered in “The ConnectedEconomy™ Monthly Report: Paycheck-To-Paycheck Consumers Digitally Disengage,” the latest in our monthly series detailing how the digitization of the economy is reshaping consumer behavior. We surveyed a census-balanced panel of 2,760 consumers about how they used the internet in that time to find out more about why consumers living paycheck to paycheck are beginning to cut back on their online activity.
Key findings from our research include:
• Paycheck-to-paycheck consumers who struggle to pay their bills are cutting back on working, shopping and commute-related digital activities the most. These consumers worked remotely 9% less, shopped online 10% less and used travel-related apps and sites 13% less than they did just two months prior.
• Engagement among high-income paycheck-to-paycheck consumers is beginning to rebound, but mid- and low-income consumers keep cutting back on their digital activity. Mid-income and low-income consumers living paycheck to paycheck are 12% and 6% less engaged in the ConnectedEconomy™ compared to two months ago — and we see this decrease across all pillars.
• Having a social life can be expensive, and it appears that many consumers living paycheck to paycheck are deciding that it is not worth the money. Consumers living paycheck to paycheck — especially those earning less than $100,000 in annual income — are checking social media, using dating apps and searching for caregivers online less than they did in November 2021.
These are only a few of the key findings that PYMNTS uncovered during the course of our latest research, which delves into the details of how consumers living paycheck to paycheck are beginning to roll back their online activity.
To learn more about why cash-strapped consumers are beginning to disengage from the digital economy, download the report.