RANCHO CUCAMONGA, Calif.—Credit card spending is making a comeback even as the pandemic persists, CO-OP Financial Services is reporting.
Data across the CO-OP credit union credit and debit portfolios shows credit purchase activity is picking up after months of depressed volume, while debit spending is beginning to decline.
Credit transaction volume and dollar amounts increased for the month (September) by 16% and 17%, respectively, compared with September 2019. Debit activity showed a more modest uptick over the same period, with transaction counts basically flat year-over-year, and transaction amounts showing a 9% increase.
Below are category-level spending trends for the month of September (data comparing Sept. 1-30, 2020, with Sept. 1-30, 2019), according to CO-OP:
Online Bookstores (Amazon)
Transaction Volume:
- Credit: Up 50%. Debit: Up 17%
Transaction Amount:
- Credit: Up 59%. Debit: Up 19%
Airline Travel
Transaction Volume:
- Credit: Down 64%. Debit: Down 44%
Transaction Amount:
- Credit: Down 69%. Debit: Down 46%
Car Rentals
Transaction Volume:
- Credit: Down 13%. Debit: Up 50%
Transaction Amount:
- Credit: Down 10%. Debit: Up 5%.
Barber, Beauty Shops and Spas
Transaction Volume (#):
- Credit: Down 25%. Debit: Down 23%
Transaction Amount:
- Credit: Down 18%. Debit: Down 16%
Hardware Stores
Transaction Volume:
- Credit: Up 41%. Debit: Up 27%
Transaction Amount:
- Credit: Up 37%. Debit: Up 40%
Grocery Stores
Transaction Volume:
- Credit: Up 6%. Debit: Down 6%
Transaction Amount:
- Credit: Up 24%. Debit: Up 6%
Political Organizations
Transaction Volume:
- Credit: Up 293%. Debit: Up 270%
Transaction Amount:
- Credit: Up 456%. Debit: Up 447%
Essential Spending
Among essential categories, September spending at home supply, hardware and discount stores, along with wholesale clubs continued to show strong year-over-year growth. “This aligns with consumers’ desire to conduct one-stop shopping at big box retailers like Walmart, Target, Costco and Sam’s Club, where they can purchase necessities like groceries and medications along with home goods and other items. By visiting fewer stores, consumers hope to limit their exposure to COVID-19,” CO-OP said.
In contrast, most travel and leisure categories continued to struggle, including airlines, movie theaters, and eating and drinking establishments. “Fast food restaurants are still depressed year-over-year, but are rebounding faster than dine-in establishments. Car rentals have been on an improving trend since the beginning of the summer, perhaps reflecting cardholders’ desire for ‘staycation’ and ‘local experience’ activities as safer and more economical alternatives to traditional vacations,” CO-OP explained.
Niche spend categories like political organizations, online gambling and digital goods continue to show phenomenal growth year-over-year. “In the case of political contributions, this is not surprising given this year’s presidential election cycle,” CO-OP said.