Will Americans increase or reduce international money transfers in 2023?
A Money Transfer Comparison
About the study
Money Transfer Comparison USA commissioned an independent study of 1144 Americans to gauge whether they plan to make changes to their international payments in 2023. Respondents were also asked to specify whether they would change their overseas spending habits next year.
The survey respondents cover a geographical and population spread that is reflective of the American population.
How do Americans expect their overseas payments to change in 2023?
Money Transfer Comparison asked respondents whether they will increase or decrease their international payments. Just 33 per cent of respondents indicated that they make international payments. Within this group of respondents, 70 per cent plan to make more, or the same, level of international payments throughout 2023. This includes 29 per cent that plan to increase payments.
How do you expect the number of international payments you make will change in 2023?
Across each age group, a majority of respondents expect to continue to make the same level of, or more, overseas payments in 2023: over three-quarters (79 per cent) of Baby Boomers (aged 59-77), compared with an equal 69 per cent of Generation X (aged 43-58) and Millennials (aged 27-40), 68 per cent of Generation Z (11-26) and only half (50 per cent) of the Silent Generation (aged 78-95).
Younger generations are more likely to increase their international payments in 2023 above their 2022 spending: a third (33 per cent) of Generation Z will make more payments overseas next year, followed closely by 31 per cent of Millennials. This compares with only 13 per cent of Baby Boomers, and none of the Silent Generation.
How do you expect to change the number of international payments you make in 2023? By generation.
Money Transfer Comparison analysed responses across household incomes. Among respondents with an annual household income of under $100,000, the largest proportion expect to make the same level of overseas payments in 2023 as in 2022. Specifically, 40 per cent of respondents with a household income of under $50,000 will make the same level of international payments, compared with 46 per cent of respondents with a household income of $50,000-$100,000 and just 33 per cent of respondents in high-income households of over $100,000.
However, more respondents from higher-income households expect to increase their international payments in 2023, at 39 per cent, followed by 29 per cent of Americans with a household income under $50,000 and 23 per cent with a household income of $50,000-$100,000.
How do you expect to change the number of international payments you make in 2023? By income.
What will be the reasons Americans will make overseas payments in 2023?
Money Transfer Comparison sought to uncover the main reasons Americans will make international payments this year. Sending money to family overseas will be the most common reason – chosen by 36 per cent of respondents – followed closely by 34 per cent of respondents who will purchase goods and services overseas. Twenty-nine (29) per cent will pay for international travel, while 27 per cent will make donations to overseas charities. Just 18 per cent will pay for overseas investments, and just 3 per cent indicated that they will make overseas payments for an unlisted reason.
Why will you make overseas payments in 2023?
Money Transfer Comparison found varying responses across generations. American Millennials are most likely to send money to their families overseas by a significant margin, chosen by 43 per cent. This was followed by 36 per cent of Generation Z, 28 per cent of Generation X and 26 per cent of Baby Boomers.
Half (50 per cent) of respondents from the Silent Generation indicated that overseas travel will be a major reason for international payments in 2023, compared with 37 per cent of Generation Z respondents, 31 per cent of Generation X, 25 per cent of Millennials and 18 per cent of Baby Boomers.
The same proportion of Silent Generation respondents (50 per cent) reported that donations to overseas charities will be another major reason for making international payments in 2023. Interestingly, Generation Z represented the second highest percentage of respondents (35 per cent) indicating this as their reason for making international payments. This compares with just 25 per cent and 22 per cent of Millennial respondents and Generation X respondents respectively.
Similarly, Generation Z represented the largest proportion of respondents (26 per cent) that expect overseas investments to be their primary reason for making international payments in 2023. This compares with just 17 per cent of Generation X, 16 per cent of Millennials and 11 per cent of Baby Boomers.
Why will you make overseas payments in 2023? By generation.
The survey also analysed reasons why respondents across various household income sizes would transfer money overseas. It found 39 per cent of respondents from middle-income households ($50,000 - $100,000) and 37 per cent from high-income households ($100,000 and more) would send money to family overseas. This compares with just 33 per cent of respondents from lower-income households (under $50,000).
A similar percentage of respondents from lower-income households (34 per cent of those earning under $50,000) will make overseas purchases for goods or services in 2023. However, more respondents (18 per cent) from lower-income households will make overseas investments next year than respondents from middle-income households (15 per cent).