RANCHO-CUCAMONGA, Calif.—Member spending continued to climb back to pre-COVID levels during the first two weeks of July, reports CO-OP Financial Services.
Comparing the CUSO’s payments data from July 1-15, 2020, with the same period one year earlier, CO-OP stated transaction volume was nearly at the same level this year, while the dollar amount of those transactions was up 17%.
Meanwhile, credit transaction volume declined 8% compared to last year but the total dollar amount was up 2%.
“The shift to debit was to be expected as more Americans went back to work and more states continued easing business restrictions. However with the additional $600 per week unemployment payouts under the CARES Act set to expire this week, we may see a shift back to reliance on credit,” CO-OP said.
Category-level spending trends:
Online Bookstores (Amazon)
Debit: Up 32%
Credit: Up 48%
“Amazon continues to be a strong top-of-wallet opportunity for credit unions, both within their credit and debit portfolios. Spending appears to remain steady, despite the fact that there is still no confirmed date for Amazon Prime Day,” CO-OP said.
Airline Travel
Debit: Down 50%
Credit: Down 69%
“While July is typically the busiest travel month of the year, travel was down over 50% in the first two weeks of July. Members aren’t ready to travel by airplane just yet. A recent survey commissioned by the International Air Transport Association (IATA) found that 84% of travelers expressed concerns about catching the virus while on the move and a higher percentage feared being quarantined while traveling.” CO-OP said.
Car Rentals
Debit: Up 12%
Credit: Down 37%
“Road trips by car, on the other hand, are becoming much more popular. Members preferred debit for purchases at car rental agencies, which jumped nearly 12% compared to last year. This could be a lasting trend. A survey from the University of Chicago found that 27% of consumers anticipated taking more long-distance trips by car post-pandemic,” CO-OP said.
Barber, Beauty Shops and Spas
Debit: Down 24%
Credit: Down 35%
“Health and beauty businesses began opening up in many states in June but it appears most members are holding off on that post-pandemic haircut (or perhaps continuing to do it themselves). This may change over the coming months as more businesses begin to implement safety precautions and procedures to put their customers at ease,” CO-OP said.
Department Stores
Debit: Down 3%
Credit: Down 8%
“Department stores continued to see some relief from a difficult year, with credit purchases down 8% and debit purchases down only 3%. Economists are still concerned about the long-term health of this industry as more consumers shift to eCommerce,” CO-OP said.
Hardware Stores
Debit: Up 25%
Credit: Up 16%
“In each payment type, transactions continue to be up year over year indicating that home improvement is still a popular spending category,” CO-OP said.
For info: www.co-opfs.org/covid19.