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August 15, 2022
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Revolut: Romanians cut spending on utilities and shopping, allocate larger budget to positive experiences

Romanians have made 86 million transactions with Revolut during the first six months of 2022, by 31% more than the first six months of 2021, and tourism generated the largest increase, according to the financial application’s data.

The total volume of payments increased by 29% during the first 6 months of the year, as opposed to the same period of 2021.

“Regarding Romanian customers’ consumer behavior, tourism generated the largest increase, with 84% for budgets allocated to traveling. At the same time, the number of transactions made in the context of tourist mobility has almost doubled (+93%). However, Romanians allocated less money for services and utilities. During this period, as opposed to the first six months of last year, spending on services have gone down by 10%, and the most modest increase, of 1.7%, was seen in the utilities segment,” according to the press release sent by Revolut.

According to the quoted source, Romanians in general have been more careful when it comes to money and spent less for shopping or in supermarkets. During the first six months of the year there was a decrease noticed in shopping, from 21% to 17%, and in the case of supermarket shopping, spending went down from 16% to 13.5%.

However, the gradual return to the social normalcy and mobility prior to the COVID-19 pandemic contributed to the increase in the ratio of spending in: entertainment (from 14% to 17%), restaurants and coffee shops (from 7.4% to 9.8%) and traveling (from 5% to 7%), in the overall spending of the first six months of the year, as compared to the similar period of last year. Inflation has also been a factor that influences this behavior, Romanians preferring to allocate more money to positive experiences, such as socializing, taking part in concerts and shows or traveling, instead of spending money for recurring acquisitions or with a reduced involvement (utilities, services, consumer goods).

A Revolut user from Romania has spent 501 euros on average during the first six months of the year, 374 euros for traveling, 299 euros for shopping, 255 euros for various acquisitions, 175 euros for utilities.

Generation Z customers account for the steepest increase in usage rate (18-24), by +88% more transactions during the first six months of 2022. They laso rank first in terms of overall transaction value, when it comes to upwards trends (+81%). The next age category that used the financial app more frequently during the reference period is the 25-34 year group (+28%), but in the category of spending volume, the 45-54 year category marked an important increase of 22.4%.

The largest average value spent per user in the first six months of the year was registered in the 34-44 year old category, that made acquisitions worth approximately 1.607 euros/client (+19%). The largest increase, regarding the same indicator, was reported for the 25-34 year category (+31%). At the opposite end, the age category that registered the smallest increase is the 55-64 age category, for which the average spending made by a client, during the first semester of the year, was 8.4% higher (850 euros/client).

Romanians allocated smaller budgets for home appliances, electronic and IT&C equipment (-19% during the first half of this year), but paid more in gas stations (+20%) and on the booking.com platform (+145%). Booking.com was among the top 5 vendors for GenZ, as well as among Millenials and Generation X (23-35 and 35-44 year olds).

“The data from the first six months of 2022 indicates a return for clients to a more alert lifestyle and the resumption of traveling, both in Romania, as well as beyond the border. Traveling, going out to restaurants and appetite for entertainment are proof that society has gone back to the concerns prior to the COVID-19 pandemic. At the same time we can also see the first signs of a more cautious behavior among consumers, aimed at reducing recurring spending. Our role is to ease their mission and help them obtain the most from their money, throughout the year, not just when they’re on holiday,” said Gabriela Simion, the General Manager of Revolut Bank, Romania branch.

In 2015, Revolut launched in the United Kingdom, with services for money transfer and currency exchange. currently, over 20 million clients in the world, including more than 2 million from Romania, are using the app’s services to make over 250 million transactions per months.

 

Photo: www.pixabay.com

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