ST. PETERSBURG, Fla.–Looking back on 2023, growth in spending on debit cards outpaced that of credit cards, according to the newest PSCU Payments Index.
Specifically, PSCU reported its December Payments Index found:
- Year-over-year growth rates for payment cards were more sizeable for debit than credit, with debit purchase growth up 5% compared to 0.5% for credit.
- Holiday spending in the Goods sector improved in November when compared to October. Year-over-year growth in purchases for the overall Goods sector was down 0.1% for credit and up 4.4% for debit in November.
- For the cumulative holiday season, Card Not Present (CNP) growth outpaced Card Present (CP) growth for both credit and debit transactions. For the five-day peak shopping period that includes Black Friday to Cyber Monday, year-over-year Goods sector debit purchases (+5.6%) grew more than Goods sector credit purchases (+3.1%).
- The Consumer Price Index (CPI-U) increased 0.1% in November, while the 12-month rate of inflation was up 3.1%. Shelter continued to rise and offset a decline in Gasoline. Excluding the volatile Energy and Food sectors, the core CPI index increased 0.3% in November, putting the 12-month Core CPI index at 4.0%.
- Mobile Wallets continue to gain popularity. For November, credit mobile wallet transactions represented 3.5% of overall credit transactions and debit mobile wallet transactions represented 6.0% of overall debit transactions.
- The credit card delinquency rate for November reached 2.46%, an increase of 13 basis points from October.
Longer Cycle, Slower Growth
“With retailers launching holiday promotions earlier each year, the longer promotion cycle has contributed to an overall slower pace of holiday spending. This year, the important Black Friday through Cyber Monday shopping weekend delivered positive year-over-year growth in consumer purchases and transactions in the Goods sector,” said Norm Patrick, vice president, Advisors Plus Consulting at PSCU. “As we approach the final stretch of the holiday shopping season, we will keep a watchful eye on whether consumers continue to spend or pull back, a key indicator of consumer financial health.”
The full report is available for download here.
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