Not surprisingly, card-not-present (CNP) use continues to see increased growth. PSCU released a report for the week ending July 5 that shows credit and debit card CNP use hitting its 12th consecutive weeks of 30% + growth. Debit card CNP use is up 35% for the 12 consecutive week and outpaced credit card CNP use. Breaking those numbers down further, debit card CNP use was up 47.8% for purchases and 42.3% for transactions. That compared to credit card CNP use being up 16.3% for purchases and 23.5% for transactions.
Amazon was the top CNP merchant. Its debit card use was up 94% and credit card use up 55%. On the other end of the spectrum, ATM use was down 17.8% as people have less of a desire to use cash during the pandemic. Travel and entertainment also took hits for debit and credit card CNP use. Grocery, consumer goods, services, and drug stores all saw an increase in debit and credit card CNP use. Of those stronger categories, consumer goods saw the largest increase in debit card CNP use at 40.1%.
"Consumers showed resilience as overall payment volume was very strong for the week, despite resurgent COVID-19 case numbers and slowdowns in state re-openings. Debit led the way once again, with volumes improving week over week for both debit and credit. Even the newly designated “hot zone” states with rising cases and restrictions showed growth in line with the overall U.S. In addition to the continuation of strong spending on groceries and goods, we also saw very strong growth in the services sector led by Healthcare and Home services," Glynn Frechette, SVP, Advisors Plus Consulting at PSCU said in the report.
PSCU, which is the nation's largest CUSO, collected data for the report from owner credit union members "on a same-store basis to identify the impact of COVID-19."
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