Greeks fall into the subscription trap
Greek consumers appear trapped in online subscriptions, as subscribing via mobile phone to various services, from TV content to video game platforms, but also marketplaces for purchasing goods or ordering food at the push of a button can be easy. However, at the end of the month the bills come, emptying bank accounts.
According to claims management company Intrum’s annual report on consumer payments, Kathimerini reveals 67% of consumers in Greece – the highest among the 20 European countries examined – are affected by the phenomenon of so-called “subscription creep,” the difficulty of managing their many subscriptions in terms of financial costs.
In second behind Greece is Ireland, with 62% of consumers facing the subscription trap, followed by Finland (55%) and the UK (53%). Almost half of consumers in Europe and 45% say they are surprised by how quickly they spend money without realizing it through monthly subscriptions or through mobile payments when using various apps.
At the same time, it turns out that although the buy now, pay later payment model (BNPL) is gaining more and more followers in Greece as well, as it actually makes shopping easier and above all helps not to drain a consumer’s wallet as quickly – although it may in the end turn out to be heavier for the consumers.
According to Intrum’s report, 35% of consumers in Europe find it difficult to track purchases through this model and remember how much money they have to pay and when, with this percentage rising to 55% in Greece, the second highest after Portugal (60%).
The reckless use of subscription services, payments in installments, combined with the highly inflationary environment, without a corresponding strengthening of wages, has led to expenses that far exceed monthly incomes. According to Intrum’s report, almost three out of 10 consumers in Greece spend more than their monthly income, with average overspending estimated at 275 euros. Where does this money come from? From savings and from credit cards, while the circulation of illegal money in the market should not be ignored. The percentage of consumers who spend more than their income in Greece is among the highest in Europe.
