Skip to main content

Consumers are Dining Out More

By Jim DuPlessis | October 06, 2020 at 08:00 AM
CUTimes

Consumer spending by credit and debit card remained steady in the last week of September, with debit spending at restaurants nearing pre-pandemic levels, according to a PSCU report released Monday.

The St. Petersburg, Fla.-based payments CUSO’s Transaction Trends Update showed debit card spending was 17.3% greater in the week ending Sept. 27 than in the week ending Sept. 29, 2019. However, it fell below the four-week average gain of 18.5%.

Credit card spending grew for the fourth week in a row, up 3.4% for Week 39, but it was also below the four-week average growth rate of 4.3%.

“Week 39 saw another strong week of performance in both debit and credit purchase volume, fueled by strong growth in retail,” Glynn Frechette, SVP for Advisors Plus at PSCU, said.

The PSCU reports are on a same-store basis, meaning a member credit union’s results were included only if it also had results for the prior period.

The strongest gains in credit card spending were in the Plains (+6.0%) and the Southeast (+5.9%) for Week 39, while credit card spending fell in Hawaii (-4.9%) and the New England region (-1.8%).

For debit cards, the biggest gains were in the Great Lakes (+21.1%) and the Mideast (+18.6%), while the weakest gains were in the Far West (+10.4%) and Hawaii (+7.7%).

Consumers made 40.9% of their credit card transactions without a card present, and 28% via debit.

“Contactless transactions continued to surge, up two percentage points over the past six weeks on debit, representing stronger week-to-week growth than we have historically seen,” Frechette said.

At restaurants, “we saw that card-not-present activity continues to grow exponentially year over year,” he said. “Both of these trends are good indicators of the continued behavioral changes and adaptation of both consumers and businesses in a post-pandemic environment.”

About 95% of restaurant spending occurs at restaurants and other eating places, and at fast-food stores. The other categories are catering and drinking places.

For debit, restaurant purchases have largely worked their way back to near or above 2019 levels. Fast food purchases rose 10.2% in Week 39, in line with the four-week average gain of 10.8%. Eating places rose 5.3%, up slightly from the four-week average gain of 4.2%.

For credit, purchases at fast food restaurants have nearly returned to 2019 levels, finishing week 39 down 0.3%, down slightly from the four-week average gain of 1.4%. However, spending at eating places fell 16.7% in Week 39, in line with the four-week average drop of 16.9%.

Spending at bars rose 11.6% year for the week by debit and fell 19.6% by credit card.

 

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

'Tis the season for fraud! Teller questions if member fraud is suspected.

  When a credit union employee suspects a member may be subject to fraud, they should initiate a careful conversation focusing on the nature of the transaction and external influences. The goal is to help the member identify red flags without the employee asking for sensitive personal information that the credit union should already have on file.  Initial Verification Questions    .pdf Before discussing the specifics of the suspicious activity, the employee should confirm the member's identity in accordance with established internal protocols.  Questions About the Transaction/Activity If the member confirms they are conducting a suspicious transaction (e.g., a large wire transfer or purchase of gift cards ), the employee should ask questions to help the member pause and think critically:  "What is the purpose of this transaction?" "Do you personally know the person or business you are sending money to?" "Have you ever met the...
Post a Comment
Read Complete Article HERE>»

Have a Safe and Happy Thanksgiving!

    Thanksgiving, is a day when we pause to give thanks for what we have! www. NCOFCU .org   Have a Safe a...
Post a Comment
Read Complete Article HERE>»

Fed cuts interest rates for the second time this year

The Federal Reserve on Wednesday lowered interest rates for the second time this year in a continued bid to prevent unemployment from surging. Fed officials voted for another quarter-point rate cut, lowering their benchmark lending rate to a range between 3.75% and 4%, the lowest in three years. It is the first time since the Fed’s rate-setting committee was established in the 1930s that officials have set monetary policy while lacking an entire month of crucial government employment data due to a government shutdown. ____________________________________ Check out NCOFCU's additional features: First Responder Credit Union Academy Podcasts YouTube Mini's Blog Job Board
Post a Comment
Read Complete Article HERE>»

Loan Growth Part 3

MADISON, Wis.–Credit union loan balances rose 1.1% in February, faster than the 0.2% reported in February 2021, even as membership growth slowed significantly during the first two months of 2022, according to data released as part of CUNA Mutual’s April Trends Report. The Report, which is based on data through February, showed overall loan growth was 9.6% during the last 12 months. What is actually happening below the surface? According to the Trends Report, consistent with the trend line the analysis shows large credit unions reported significantly faster loan growth in 2021 as compared to smaller credit unions. Credit unions with assets greater than $1 billion reported loan growth of 8.4% compared to credit unions with assets less than $20 million, reporting loan growth of 0.9%. Here's a look at how credit unions performed by category, according to the newest Trends Report” ...
Post a Comment
Read Complete Article HERE>»

Two Members of FOMC Indicate December Rate Cut Not a Sure Thing

  WASHINGTON–Two members of the Fed’s Open Market Committee have indicated they are in no hurry to further cut rates, despite market expectations. “I’m not decided going into the December meeting” and “my threshold for cutting is a little bit higher than it was at the last two meetings,” Federal Reserve Bank of Chicago President Austan Goolsbee said in a Yahoo Finance interview. “I am nervous about the inflation side of the ledger, where you’ve seen inflation above the target for four and a half years, and it’s trending the wrong way.” Goolsbee was interviewed after last week’s Federal Open Market Committee meeting that saw policymakers cut their interest rate target by a quarter percentage point, to between 3.75% and 4%, as officials sought to offset rising risks to the job market while still keeping interest rates in a position where they’ll help lower inflation pressures, noted Yahoo Finance. As the report also noted, Fed Chair Jerome Powell cautioned last week that “a further r...
Post a Comment
Read Complete Article HERE>»

Hybrid? Work from Home? Office? The Debate Over The Ideal Work Environment Continues in CUs

 The Still-to-be-Answered Question About Work By Ray Birch MADISON, Wis.—With several years’ experience now under their belts, what has turned out to be the most productive work structure for credit unions in the wake of the pandemic—return to office, work from home, hybrid? It’s a challenging question, one compounded by the fact many CUs lack objective metrics for measurement, according to one person. “As we all know, credit unions first jumped to remote work and then things came back a bit as they tried to create a work environment that as closely as possible reflected ‘normal,’” explained Lesley Sears, VP of consulting services at CUES. Sears pointed out when credit unions shut down at the b...
Post a Comment
Read Complete Article HERE>»

Not Your Mother’s Credit Union

“Stablecoins aren’t a speculative play. They’re the next evolution of payments — and a chance for credit unions to lead, not lag. It starts with connecting members to DLT rails - the digital wallet. Without that, nothing else can happen. It’s just a new payment rail - embrace it or lose the relationship. It’s that simple.” While ‘ stablecoins ’ were the prevailing buzzword across Money20/20 this year, the credit union industry had a significant presence. Small financial institutions have staked a place in the future of payments. Credit unions  received a significant boost this summer with the enactment of the stablecoin bill into law. The Guiding and Establishing National Innovation for U.S. Stablecoins Act authorizes subsidiaries of federally insured credit unions, such as credit union service organizations, to become issuers. Not Your Mother’s Credit Union A Money20/20  fireside chat  with the regulator for credit unions that I moderated focused on the rulemaking task a...
Post a Comment
Read Complete Article HERE>»

Banking During and After COVID-19

Before COVID-19, the banking industry was experiencing an unprecedented period of growth and prosperity. Despite increasing consumer expectations and increased competition from non-traditional financial institutions, most banks and credit unions were stronger than at any period since the financial crisis of 2008. In a matter of only a few weeks, the world of banking has experienced a level of disruption that will change everything that had been the norm in financial services. There has not only been a major change in the way financial institutions conduct business but in the way, employees do their work and the way consumers manage their finances. Banks and credit unions must use this time of disruption to consider reinventing themselves from the inside out. It is a time when we need to better understand the way consumers expect their financial institution to support their financial needs. This includes the way banks and credit unions use data, AI, technology and human resources t...
Post a Comment
Read Complete Article HERE>»

Zelle Says It Will Allow Users to Make International Payments Using Stablecoins

SCOTTSDALE, Ariz .–   Zelle  has announced plans to allow users to start making international payments using stablecoins. The move by Early Warning Services, which operates the P2P payments network Zelle and which is owned by a consortium of large banks, comes in the wake of the passage of the GENIUS Act, which is designed to usher stablecoins into the regulated financial system. Stablecoins are a digital currency that is pegged to a fiat currency such as the U.S. dollar. As the CU Daily reported  here , credit unions were strongly urged during an event last week to not just start paying attention to stablecoins but to begin taking action as interchange income is threatened. Similarly, analysts said the move by Zelle to help users move money across borders is a defensive move in response to what is expected to be the growing use of stablecoins by consumers and businesses. Early Warning Services did not indicate how it would work or when it would launch, according to sever...
Post a Comment
Read Complete Article HERE>»

CUs Encouraged to Promote Automatic Savings Plans

America Saves Week and Military Saves Week kick off this weekend. The week-long, national campaigns will begin Feb. 19 with events that aim to unite government, nonprofit and corporate groups to encourage individuals and families to save and build personal wealth. This year’s campaign theme – “Set Goals, Make a Plan, Save Automatically” – promotes the need for families to get aggressive with automatic savings.****READ MORE: CUs Encouraged to Promote Automatic Savings Plans :
Post a Comment
Read Complete Article HERE>»