Openpay, the UK’s latest next-generation, interest-free payment solution, has found that due to the pandemic, Brits now shun the payday treat - with nearly half (46%) now waiting until the end of the month to treat themselves after assessing finances. Almost two fifths (38%) said that the pandemic had permanently changed their outlook on spending.
The new ‘paydelay’ treat has seen shoppers spend significantly less than they would have on payday, with the average monthly spend declining by 37%. Dropping from £134.40 to £84.70, consumers will now spend £596.40 less per year on goods.
It also appears that retailers will have to revise elements of marketing strategies to accommodate the change in behaviour. Half of respondents (50%) said that they found payday marketing intrusive, as concerns around privacy and search history continue to grow.
Prior to the pandemic, fashion was by far the biggest payday treat, with over a third (36%) of respondents spending on their wardrobe. However, government restrictions around the size of social groups and shortened establishment opening hours have caused a change in priorities, with now only 15% saying fashion is their go-to purchase.
With people likely to be spending more time at home than ever over the next six months, Openpay’s research revealed the dawn of the smart home is on the horizon. The biggest purchase for Brits is now consumer tech, with over a quarter (27%) naming it as the top treat.
Andy Harding, UK Managing Director of Openpay, said: “The pandemic has changed the habits of consumers forever, and I’m not surprised to see a more considered approach to spending from so many Brits. Despite a decline in the average spend of goods, it’s encouraging to see that people are still looking to invest in the things they need and want given the last few months – the only change is that flexibility and forward planning of finances will always be front of mind.”
Research was conducted by Opinium of 2,000 UK consumer between Tuesday 11th August and Friday 14th August 2020.