10 2019 | INSIDE

 11Online payment preferences of paysafecard users

Know your Customers

The survey shows which target groups merchants can reach best with paysafecard.

On behalf of paysafecard, the digital market agency marketagent.com recently surveyed the recipients of the paysafecard B2C Newsletter in eleven European countries to gain insights as to their usage habits and preferences when purchasing online. The results show an exciting picture of the target groups, which can best be reached by merchants via the cash payment solution paysafecard.


Target groups: Top with young consumers

The breakdown of the various age groups in the survey sample clearly shows that online merchants which target customer under 45 years of age can reach them particularly well with paysafecard. 62.3% of the study participants are in the 18-45 age range. 23.3% of them are between 18 and 25 years old. 18.7% of the surveyed group is not yet of legal age. In total, the group of customers under 45 years of age is clearly the largest in the survey, representing 81% of all participants.


Spending frequency: Games and online shopping ahead

The study shows that participants spend their online money mostly on computer games. Of there, well over half (61%) make an investment in-game or in-app purchases, at least on a case-by-case basis. Within these target groups, online shopping and online auctions come in second place (41.3%). However, sport bets (24.6%) and spendings on poker, casino and bingo (22.8%) also play a major role. Expenditures on music, film and entertainment offers are also mentioned frequently, representing a total of 18%.


Country results: Major expenditure differences

As concerns the frequency of payment in the five areas mentioned, the breakdown details major differences per country. In German-speaking countries (Germany, Austria and Switzerland), online shopping plays a much larger role than in the Eastern European countries, where the results in Czech Republic, Poland and Romania are clearly below-average. However, the Polish participants surveyed are absolute frontrunners in the "Games" segment. This segment is also of heightened importance in many other Eastern European countries. This is completely different in contrast to Great Britain, where money is only spent on games at a lower level. British users mostly frequently pay online for poker, casino or bingo offers. Sports betting is another major market. Only in Romania is betting more frequent.


Payment methods: paysafecard is the clear front-runner

The figures also show that the largest percentage rate of online purchases among those surveyed, by far, were made with paysafecard. It’s overall share is more than 20% higher than credit cards (21% of all purchases) or PayPal (only 11% of all purchases). On average, one third of consumers use it every week. In countries such as Great Britain and Italy, the weekly usage is even more prevalent.


Account and credit card: Chance of low prevalence

The prevalence of bank accounts and credit cards is relevant for the classification of these results. Particularly in Eastern European countries, not all study participants have a bank account. In Poland and Czech Republic, they make up only just over half the sample. For their online purchases, credit cards may be used even less. Even in economies such as Austria, only 47.7% of people are able to pay with a credit card at all. But even in the UK (42.1%) or in Germany (50%), they only make up about half. paysafecard usually remains for them the only option for paying on the Internet. The increase of revenue for online merchants though this payment method is, therefore, guaranteed.


Future prospects: Major growth potential

Another result strongly suggests that purchase transactions with paysafecard will continue to increase. When asked about activities for which they intend to use paysafecard in future, those surveyed mention the five areas detailed above in which they typically make purchases. But, in comparison, they intend to use paysafecard much more frequently. Over 5% intend to make payments more frequently in the "Games" sector, more than 7% more frequently with "Online Shopping" and more than 6% more frequently with sport bets. The front-runners are Poland with "Games" (87.1%), Austria with "Online Shopping" (57.8%) and Germany with purchases in the "Music, Films and Entertainment" sector (41.9%).


Paying online: Security beats anonymity

The reasons for this increase are the aspects which are most important to the users surveyed when paying on the Internet. More than 96% say that it is "absolutely" or "quite important" to them that an online payment method is secure. Similarly, well over 90% attach a great deal of importance to the payment being processed quickly and practically, as well as being easy to manage. By contrast, anonymity only plays a major to very major role for 74.7% of those surveyed. The opportunity for cost control is more important: 91.1% appreciate this aspect of a payment method very much.


Reasons for use: Simple handling is particularly important

These aspects overlap nearly one hundred percent with the perception of paysafecard in comparison to other payment methods. 65% of those surveyed are convinced that paying with paysafecard is "absolutely secure". This is almost twice as much as with credit cards (35.4%) and significantly higher than with PayPal (44.3%) or a direct debit (39.7%). Furthermore, for the majority, the paysafecard is the most user-friendly (68%). This is again the best value in a direct comparison to credit cards (46.2%), PayPal (46.6%), cashpoint cards (40.7%) or instant transfers (32%). Far more than a half stated that "simple handling" (65%) and "payment security" (56%) are among the main reasons for their usage of the paysafecard.


Likes: Users love quick payments

One of the things users particularly like about paysafecard is how simple it is to use and how quickly transactions are processed. However, many would like it to be accepted more often in the online checkout.


Net promoter score: Romania and Portugal are particularly satisfied

Overall, most users would highly recommend paysafecard to others. Satisfaction is currently highest in Romania, Portugal and Italy.