Today, PSCU – the nation’s premier payments credit union service organization (CUSO) – published the January edition of the PSCU Payments Index, the goal of which is to provide information and insights to help financial institutions make informed, strategic decisions on the road ahead. In this month’s iteration, strong consumer purchasing continued through the extended holiday shopping season (October through December), with the strongest share of weekly purchases – similar to previous years – during the four weeks beginning with Thanksgiving week. The Consumer Confidence Index increased in December with optimism on short-term business conditions and labor markets, yet uncertainty remains as inflation continues to rise. In addition, the Omicron variant has taken center stage in the fight against the COVID-19 pandemic. This month, we present the final installment of our three-part Deep Dive into 2021 Holiday Spending. “While 2021 proved difficult to predict the direction of card and other payment types, 2022 could similarly present the industry with some disruptive surprises,” said Sarah Grotta, director, Debit and Alternative Products Advisory Service for Mercator Advisory Group. “Data in the latter part of 2021, including the all-important holiday shopping period, saw consumers reverting to more typical levels of credit card usage, reversing the trend that we saw over the prior two years in which more transactions were processed on debit cards. As the average consumer savings rate begins to decline and there is an increased return to old habits like dining out and traveling, credit cards will be the payment type of choice. PSCU’s Payments Index data shows that the pandemic is still front and center, driving greater use of contactless transactions in the form of contactless cards, mobile wallets and merchant wallets. Looking ahead, three of the biggest influencers on the payments landscape will be the rate of inflation, regulatory changes, and, unsurprisingly, the evolving path of the pandemic.” A sampling of key takeaways from the January report includes:
As we enter 2022, we will continue to evolve the PSCU Payments Index to deliver timely, relevant insights into consumer spending trends. As consumer preferences and behaviors continue to shift and evolve, the Payments Index will include greater focus on year-over-year changes and fewer comparisons to pre-pandemic 2019. The full report is available for download here or can be shared as a PDF upon request. Additionally, feel free to subscribe here to receive updates when the PSCU Payments Index is published each month.
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Author: Mike LawsonMarried to a most gorgeous and wonderful wife, raising 5 kiddos (including twins!), enjoy helping others tell their stories, and love surfing SoCal waves. Keep it simple. Archives
March 2024
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