Digital Transactions Authoritative, insightful and timely information for payments professionals
The Covid-19 impact continues to make itself known in the payments arena. Consumers are increasingly favoring debit cards, especially now that many have received $1,200 stimulus payments. And merchants using the Clover point-of-sale system now have access to online ordering on the platform.
Consumers increased their debit card spending 6.6% for the week ending May 3, compared with the week ending May 5, 2019, says PSCU, the St. Petersburg, Fla.-based credit union service organization. In its weekly transaction report, PSCU noted the average purchase amount is up 18.2%, a reflection it says of the cash infusion many consumers received from stimulus deposits of $1,200 or more. Credit card spending, however, is down 20.1% year-over-year.
Online shopping continues to grow, too. While purchases made at Amazon.com Inc., according to PSCU’s aggregation of merchant categories for the e-retailer, increased 51% for the week, debit card purchases soared 135%.
And spending was up in two of three top merchant categories, independent of channel. There was a 4% increase in credit and a 31.9% increase in debit card purchases in consumer goods. In the grocery category, credit was up 25.2% and debit up 23.5%. The restaurant/diner sector was down 56.2% in credit card spending and down 28.2% in debit card spending. PSCU calculates the trend data based on activity from its member credit unions
In related news, Clover, the point-of-sale system from Brookfield, Wis.-based Fiserv Inc., added an online ordering function. Within three weeks of its availability, Fiserv says more than 1,500 restaurants are using the service. Consumers can place online orders via a menu Web page created by Clover or in the Clover app, which incorporates a rewards program.
