Faced with an unprecedented situation, we all made huge changes in our daily lives with new ways of life and an altruistic community spirit. A European study carried out by PayPal in partnership with Ipsos during the crisis, reveals an important turning point in buying habits in Portugal – in particular, solidarity and the local spirit.
Although loyalty to the big brands was maintained during confinement, it was small and medium-sized companies that stood out, since respondents in Portugal recognized the importance of supporting local retailers. More specifically, 27% of consumers say they shop with small businesses more often than usual during confinement, compared with 16% who said the same for large stores.
The elderly provided the greatest support to local businesses:
- 89% of people over 65 believe that supporting the local economy is essential to overcome the crisis
- 63% say they feel responsible for supporting companies in their area
And this support for the local economy and local companies does not seem to have stopped with the end of the confinement, with 75% of respondents in Portugal saying that they will buy more local and regional products.
Confinement has led companies and consumers to favor contactless payments, which allows for distance measures to be followed.
While the vast majority of Portuguese citizens (62%) used bank cards to pay for their purchases during confinement, 47% opted for online payments. 67% of millennials prefer online payment services, compared to 40% of citizens who are over 55.
- 67% are willing to try new payment methods at their favorite stores
- 62% of respondents prefer to use contactless payment methods to avoid pin introduction
The use of cash is still up for debate: 62% of respondents in Portugal are willing to pay cash in stores again when the situation improves, but 33% are still afraid.
Wave of solidarity: Online donations increased
Online payments and solidarity are victorious in the crisis. Although there was a temporary decrease in donations during confinement due to a phase of uncertainty that requires resilience, the slowdown in confinement led to a significant increase in solidarity actions. Indeed, the Portuguese want to contribute to the economic recovery and online payment is their preferred method of doing so:
- 69% of consumers claim to have chosen this payment method to send money to their family members (family and friends) during confinement.
- 72% of respondents now prefer to make donations online, an increase of 14% over the period before the crisis.
“We are in an unprecedented situation that has radically changed the way we live, work and consume. We pride ourselves on how our PayPal community came together to protect and support each other, and how we were able to harness our technology to help our customers. consumers and merchants to overcome this challenge. Merchants have used their creativity and generosity to continue to serve their customers and allow them to pay with ease, “said Miguel Fernandes, Business Director at PayPal in Portugal.