Saturday , August 13, 2022

Eye on E-Commerce: More Older Online Shoppers; PSCU Notes Continued Strong Online Debit Use

More older consumers—those 45 years old or more—are likely to pick up online shopping as a routine shopping channel, predicts eMarketer Inc.

The New York City-based research firm forecasts a 5.8% increase in the number of online shoppers in that demographic. That is up from the earlier forecast of 3.2%. EMarketer says the boost equates to nearly 5 million new users. 

Part of the growth likely is because of the Covid-19 pandemic, which has spurred a surge in online shopping as nonessential retailers, hospitality, and services businesses closed or curtailed operations. Consumers, in the interest of avoiding possible infection, also have adopted shopping habits that avoid face-to-face contact. In May, e-commerce spending increased 93% compared to May 2019, Mastercard says.

“Because older adults are more likely to develop serious complications from the coronavirus, it’s unsurprising that they are taking extra precautions and utilizing more online and contactless shopping options,” eMarketer’s report says

In related news, while credit cards continue to be a much favored online payment option, debit card-not-present volume continues to grow at financial institutions that use PSCU, a credit union service organization. PSCU, in its weekly transaction trend report, released Monday, said debit CNP volume increased 41.6% for purchases and 42.2% for transactions over the same week last year, marking the ninth consecutive week of growth above 40% for debit, PSCU says. In comparison, credit card CNP increased 11.3% for purchases and 23.3% for transactions. 

Debit card use was up at Amazon.com Inc., too, with an aggregated purchase volume increase of 85%. Credit card use was up 48%.

Check Also

BitPay Launches a Rewards Program for Its Crypto-Based Prepaid Card

The drive to encourage consumers to use cryptocurrency to pay for transactions at the point-of-sale …

Digital Transactions