Money comes, money goes: Are we in an age of “Fast Spending”? (2024)

In an era of overnight packages, same-day shipping, and busy lives on the go, consumers seem to have a need for speed — and the digital age is here to deliver. Roughly one third of consumers (34%) buy something online at least once a week, and 20% of retail purchases are expected to take place online in 2024.¹ Convenience is priceless to many, and Empower research finds thatTime is Money: With Americansvaluing their time at $240 per hour on average, more than a third(36%) would rather pay more to have an item delivered than drive 10 minutes to get it.

Life in the fast lane

According to The Census Bureau of the Department of Commerce, U.S. retail e-commerce sales for the second quarter of 2024 hit $291.6 billion.² The figure isn’t surprising considering the number of boxes online shopping checks for consumers: The convenience of shopping anywhere at any time with no crowds or lines, virtually limitless product offerings, access to reviews from fellow shoppers, the list goes on. While the ability to compare prices is certainly a major perk, fast delivery times may be further whetting the fast-spend appetite. Empower research shows thatnearly 2 in 5 say saving time is more important than saving money (37%).

Growth in retail e-commerce sales worldwide, 2022 – 2027 (in trillions)

Source:35 E-Commerce Statistics of 2024 – Forbes Advisor

Amazon boasts the highest market share among e-commerce companies, with 37.6% of e-commerce sales;Walmart accounts for 6.4% of sales and Apple, 3.6%.³ With a fast — and largely free — delivery model as part of its value prop, Amazon continues to streamline delivery times for its Prime members. In the first quarter of 2024, the company set new worldwide records, and in March roughly60% of orders placed by Amazon Prime members arrived either the same or next day across the top 60 largest U.S. metros.⁴ If the fast spending experience is a positive one from the “buy now” click to doorstep arrival, what’s to stop consumers from wanting even more, even faster?

A stone’s throw

Impulse purchases cost consumers nearly$2,000 a year on average,⁵ but the trend of fast spending is spilling over to some major purchases that typically take time to consider. Case in point: engagement rings. About1 in 5 (19%) people say they spend more time planning for their current or future wedding than they do for their retirement, according to Empower research. Yet when it comes to sealing the deal with the rings, many are saying “I do” to rapidly produced synthetic diamonds.

Lab-grown stones accounted for43% of engagement rings and 13.5% of diamond jewelry sold overall in the U.S. in the first quarter of 2024.⁶ What’s the appeal of these shiny new objects? Not only are they easier on the wallet — a 1-carat princess-cut mined diamond runs roughly$2,500, versus $500 for a lab-grown equivalent of comparable quality⁷ — but speed to market adds to their luster. Scientists have refined lab-growing techniques to just150 minutes,⁸ while natural diamonds take literally billions of years to grow. This makes for an abundant and diverse supply, so there’s plenty to choose from for couples who don’t want to spend extended periods of time searching for just the right stone.

Digital “ex-streams”

Consumers’ demand for on-demand everything extends beyond the typical retail experience. Home entertainment options have expanded to the point where watching digital movies may be just as good as a theater experience — but with no lines to wait in, and in the comfort of your flannel pajamas and fuzzy slippers. As more and more titles become readily available through streaming subscriptions and at-home theatrical releases,36% of Americans say they prefer watching new films at home instead of at the theater.⁹

Nearly every household (99%) in the U.S. today subscribes to at least one or more streaming service, and on average, Americans spend three hours and nine minutes daily, more than 21 hours weekly, streaming digital media.¹⁰

Finances at your fingertips

The majority of Americans seem to like having their financial information within reach at all times: Nearly 4 in 5 people prefer digital banking (78%) to in-person banking (29%).¹¹ Many have recognized the advantages and convenience of round-the-clock access to manage finances, without being tied to bank office hours.

Making the move to mindful

An Empower study shows that many people are turning online to “dreamscroll” or browse things they’d like to one day own. More than7 in 10 Americans (71%) say the modern day window-shopping habit of looking at dream purchases keeps them motivated to reach their financial goals.

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