Paycheck-to-paycheck Consumers invest the most in crypto
People who struggle to live paycheck to paycheck have more than half as much cryptocurrency in their portfolios as people who don’t.
The percentages are still pretty small anyway, making up just 3.6% of the investments of those living paycheck to paycheck with hardship according to “Paying with cryptocurrency: Can crypto at checkout become a profit center for merchants?” an August report by PYMNTS and BitPay.
Crypto accounts for 2.1% of the savings and retirement portfolios of people who don’t live paycheck-to-paycheck, and 2.3% of those who simply live paycheck-to-paycheck.
Unsurprisingly, bridge millennials and millennials held more of their portfolios in crypto – 5% and 4.5% respectively, followed by Generation Xers at 3%. Gen Z, on the other hand, were surprisingly less keen to invest in cryptocurrencies, with only 2% having it among their investments. Even if you are younger, it is possible that smaller and newer portfolios play a role in it.
As for why, appetite for risk appears to have a big role to play, according to the survey, which surveyed 3,583 consumers in June. With people living paycheck to paycheck most willing to take on high-risk, high-reward investments like cryptocurrency.
More than twice as many financially affluent survey respondents (46%) said that having a diversified portfolio was a factor influencing their investment and savings decisions. Only 22% of those struggling paycheck to paycheck said so, as did 25% of those doing so comfortably.
Then there’s directly minimizing risk, which was cited by 35% of those living hard and 34% of those living comfortably, compared to 43% of those not living paycheck to paycheck at all.
Beyond that, liquidity proved to be a greater requirement for those living paycheck to paycheck. Fully a quarter of that group said the speed at which these funds are available was a key factor, compared with 23% of the middle and 19% of the most affluent.
NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS WITH STRONG DEMAND FOR SUPER APPS
About: The findings of PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy”, a collaboration with PayPal, analyzed the responses of 9,904 consumers in Australia, Germany, the UK and the US and showed strong demand for a single multi-functional super app instead of using dozens of individuals.
