The rapid migration of consumer activity from physical venues to home-centered digital platforms is fundamentally altering transaction flows and merchant engagement models. New research from Visa Business and Economic Insights (VBEI) identifies this phenomenon as the "couch economy," a structural shift where shopping, dining, and entertainment are increasingly managed through digital interfaces. This transition is not merely an extension of e-commerce but a broader behavioral change driven by consumer demands for convenience and seamless integration into daily routines. By analyzing anonymized VisaNet transaction data across six global markets—Australia, Brazil, Poland, the United Arab Emirates, the United Kingdom, and the United States—the report highlights how digital commerce, subscription models, and delivery services are capturing a larger share of domestic payment volumes.
Digital Commerce Expansion Across Global Markets
The shift toward home-centered consumption is reflected in the rising share of domestic payment volumes occurring via online and in-app channels. In the United States, the share of such transactions is projected to rise from 48% in 2019 to 58% by 2026. This trend is even more pronounced in emerging digital markets; for instance, the UAE saw its share of online and in-app payment volume climb from 10% to 24% between 2019 and 2026, while Poland's share moved from 35% to 55% in the same period.
Beyond total volume, the frequency of digital engagement is increasing. In the United Kingdom, nearly 28% of cards now record 10 or more online or in-app purchases per month, a significant increase from the 15% recorded in 2018. Similarly, in the UAE, the share of cards active on food delivery apps grew from approximately 2% in 2018 to nearly 30% by 2026. This data suggests that digital commerce is moving from an occasional convenience to a deeply embedded component of everyday consumer behavior, as services become increasingly integrated into the daily routines of mass-market consumers.
Subscription Models and Delivery Services Capture Share
The "couch economy" is most visible in the entertainment and food sectors, where digital-first models are outperforming traditional physical experiences. Streaming subscriptions have achieved a broader reach than out-of-home entertainment, such as cinema and concert spending, across all six markets studied. In the U.S., more than 17% of cards are used for streaming subscriptions, which significantly exceeds the roughly 6% of cards associated with cinema and concert spending.
This dominance of at-home services extends to the food sector, where delivery has transitioned from a niche luxury to a mainstream service. The research indicates that growth in food delivery is increasingly propelled by mass-market consumers rather than being limited to high-income segments. Furthermore, the shift toward home-centered spending is influencing diverse categories, such as pet care. In the U.S., roughly 8% of domestic cards show regular spending at pet merchants, highlighting how rising pet ownership is driving recurring household purchases in grooming, supplies, and care services. As convenience becomes a baseline expectation, businesses are increasingly forced to compete through digital engagement, subscription-based recurring value, and robust delivery capabilities to maintain consumer relevance.
Key Takeaways
- In the U.S., the share of domestic payment volume occurring online or in-app is expected to reach 58% by 2026, up from 48% in 2019.
- Streaming subscriptions are now utilized by a larger share of cards than cinema and concert spending across all studied markets, including 17% of U.S. cards versus 6% for traditional entertainment.
- Food delivery adoption in the UAE has seen significant growth, with the share of active cards rising from approximately 2% in 2018 to nearly 30% by 2026.
FinanceInsyte's Take
In our view, the "couch economy" represents a permanent reconfiguration of the consumer value chain that financial institutions and merchants must address. This is not a temporary pivot but a structural migration of capital toward platforms that prioritize friction-less, recurring digital interactions. For payment processors and banks, this shift signals a move away from high-value, episodic physical transactions toward high-frequency, lower-margin digital micro-transactions and subscription-based flows.
The data suggests that the competitive moat for businesses is no longer just the product itself, but the digital ease with which that product can be delivered to a home environment. As streaming and food delivery become deeply embedded in the "daily routine," the ability to manage recurring billing and seamless digital engagement will become the primary driver of customer retention. Institutions that fail to optimize for these high-frequency, digital-first spending patterns risk losing visibility into the core of modern consumer liquidity.
Questions & Answers
How does the "couch economy" impact the competitive landscape for traditional entertainment venues?
Traditional venues, such as cinemas and concert halls, face increasing competition from at-home digital services. Visa's research shows that streaming subscriptions now reach a broader share of consumers than out-of-home entertainment across all studied markets, suggesting that convenience and digital accessibility are successfully capturing market share from physical experiences.
What specific geographic trends in digital payment volume does the Visa research highlight?
The research highlights significant growth in online and in-app payment shares across several markets. Specifically, the U.S. is projected to reach 58% by 2026, Poland is expected to see a rise from 35% to 55%, and the UAE has seen its share grow from 10% to 24% between 2019 and 2026.
Is the growth in food delivery services limited to high-income demographics?
No. According to the report, food delivery has become a mainstream service, with growth being increasingly driven by mass-market consumers rather than being restricted to high-income spenders.
What role does recurring spending play in this new economic model?
The "couch economy" is characterized by a shift toward subscription models and recurring household purchases. This is evidenced by the dominance of streaming subscriptions and the growth in recurring categories like pet care, where businesses compete by providing ongoing digital engagement and recurring value to the consumer.
Source: Businesswire
