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May SpendTrend shows rise in credit card spending First Data Corp.'s May 2011 SpendTrend report demonstrates a softer economy in May this year compared with May 2010. The report shows year-over-year volume growth in credit card spending was down 6.6 percent in May 2011, the lowest monthly growth so far this year; the year-over-year transaction growth of 5.5 percent is the slowest growth reported in the past year. However, those who did use credit cards spent more. The study indicates credit card dollar volume growth rose by 8.8 percent. Credit card spending growth was larger than both PIN debit and signature debit spending in May. "Higher-end consumers are utilizing credit and paying off the balances, while lower-end consumers are turning to credit to cover everyday expenses," the study reported. Buying increased 1.4 percent over the previous May. It was slightly higher than April 2011, and it was the largest increase in the rate of consumer spending so far this year. When gasoline costs are excluded, however, the average consumer purchase increased only 0.5 percent over the previous year, though every industry sector with the exception of restaurants and grocery stores saw a rise in spending. First Data Information and Analytics Solutions Division Manager and Senior Vice President Silvio Tavares said, "Card spending growth slowed in May. High gas prices and stubbornly high unemployment constrained growth in most merchant categories." First Data's SpendTrend follows credit card, signature debit, PIN debit and electronic benefit card same-store consumer spending trends in the United States. www.firstdata.com/infoanalytics
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- Francis deSouza, Senior Vice President, Enterprise Security Group, Symantec Corp.
Payments industry lookin' good Merchant Acquiring, an Update: EMV, Interchange and Mobile Payments, a May 2011 report from Aite Group LLC, indicates top acquiring stakeholders believe the industry is on the rebound. Also, according to Aite Senior Analyst Adil Moussa, 80 percent of survey participants agree mobile POS solutions will "dramatically increase the number of businesses accepting cards over the next three to five years."
Mobile shopping continues to grow More people are using smart phones to do business, stay connected and shop, a new JiWire Mobile Audience Insights Report stated. The study found 71 percent of consumers who own smart phones are using their devices to research purchases. Almost 20 percent of consumers with smart phones used them to research and then make purchases. Nearly 20 percent of consumers said they are comfortable using their smart phones to make purchases in excess of $500.
Teens, young adults like mobile payments A survey by Kelton Research for MasterCard Worldwide found that 62 percent of U.S. mobile phone users surveyed would be willing to use smart phones to make purchases. Sixty-three percent of respondents ages 18 to 34 are ready to use mobile payments now; only 37 percent of those 35 and older said they are comfortable with mobile payments. |
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