More Tags

Subscribe to Email Updates

Popular Stories

The Quick On Visa’s 8-Digit Bin Migration
How One Credit Union's Workforce Went Completely Remote
Credit Unions Are Beginning To Embrace Fintechs
Frictionless Payments
More Evidence Fintechs Are Turning Into Banks
Written by Cyndie Martini
on October 20, 2020

CO-OP Financial Services recently released payment data for its members. September data showed credit cards gained 17% year-over-year while debit cards gained only 9% year-over-year. This contrasts with August data, which shows the two payment methods almost tied at 11% for credit cards and 10% for debit cards.

PSCU also confirms the credit card growth trend seen by Financial Services. PSCU's Transaction Trends Update report, released on October 5, shows that credit card spending in the four weeks ending September 27 was 4.3% greater than the four weeks ending on September 29. Debit card spending rose by 18.5% during this same period.

The most recent PSCU data, which is for the week ending October 4, credit card spending growth was lower than debit card spending (3.6% compared to 14.6%). From September 28 to October 4, credit card growth rates were stronger than debit card growth rates.

Consumers continue to spend strongly in essential areas such as home supply stores, hardware stores, discount stores and wholesale clubs. Spending at big box retailers provides a one-stop shopping experience for consumers, limiting their exposure to COVID-19 in the process since they don't have to visit as many stores. This retail-based spending is also the main driver of recent debit and credit card spending.

For the last week of September, restaurant debit card spending had reached or gone above pre-pandemic levels (2019). However, fast-food restaurant sales remain lower year-over-year but are coming back quicker than the dine-in restaurants. Car rentals continue their trend upward, which started at the beginning of the summer. This is most likely due to consumers choosing to travel more locally, avoiding potentially less safe options such as flying.

The CO-OP Financial Services and PSCU reports show what much of the other economic data for the past few months have been showing — that the economy is slowly recovering and trending up.

Let Us Know What You Thought about this Post.

Put your Comment Below.

You may also like:

Credit Cards

Shrinking Credit Card Balances Hitting Credit Unions and Banks

Since the pandemic began, consumers have been aggressively paying their down credit card balances. The FED's October 7 G...

Credit Cards Credit Unions Interest Rates Loans

Are credit unions ready for an interest rate hike?

The final few months of 2016 are sure to be filled with many big developments for our country. While the obvious one is ...

Debit Cards Credit Cards Credit Unions EMV ATM Visa

How Credit Unions can Strengthen Cyber Security

October is National Cyber Security Awareness Month