Saturday , August 13, 2022

Debit Card Use on Amazon Soars 70%, PSCU Report Finds

With little indication e-commerce spending is slowing, consumers are favoring using their debit cards on Inc., with a 70% increase in debit card transactions at the giant e-commerce retailer for the week ending Feb. 7, compared to the week ending Feb. 9, 2020. That’s according to the latest Tracking Transaction Trends report from PSCU, a credit union service organization.

St. Petersburg, Fla.-based PSCU also said that credit card use increased 50% for the same period. That data shows this is an ongoing trend for Amazon transactions, as in the prior four weeks debit purchases were up 83% and credit purchases up 48%, PSCU says.

“Amazon continues to experience exceptional year-over-year growth, further supporting the significant increase in e-commerce activity since the onset of the pandemic,” Glynn Frechette, senior vice president of Advisors Plus Consulting at PSCU, said in the report.

Overall, in the goods sector, which includes card-present and card-not-present transactions, debit card use was up 37% for the week and credit card use up 29% at miscellaneous stores, the largest portion of the goods sector that includes furniture, appliances, sporting goods, liquor, and similar stores. 

The spread between debit card and credit use at retail stores—home improvement, hardware, and discount stores—was narrower with debit increasing 37% and credit 30%.

Across all merchant types, debit card use was up 21.6% and credit card use up 8%.

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