RANCHO CUCAMONGA, CA (August 17, 2020) — Year-over-year spending during the month of July inside the CO-OP Credit and Debit portfolio increased for the first time since the COVID-19 pandemic began. Credit transaction volume increased 1 percent while the total dollar amount of those transactions increased 10 percent; meanwhile, debit transaction volume grew 1 percent while the total dollar amount was up 18 percent.
According to the U.S. Department of Commerce, the savings rates within American households hit record levels during the months of April and June, which may explain the increased spending among members. It may be too early to call this a recovery but it is definitely a good sign that members are resuming “normal” spending despite the continued uncertainty of COVID-19.
At the same time, spending within traditionally popular categories like air travel and in-person dining and entertainment continues to lag, while digital and essentials spending are on the rise. Members are also relying more on debit than credit – although we may see that trend shift in the coming weeks as members await the passing of a new stimulus relief plan.
Here are the category-level spending trends we are seeing for the month of July (data comparing July 1-31, 2020 with July 1-31, 2019):
Online Bookstores (Amazon)
Transaction Volume (#):
Credit: Up 48 percent. Debit: Up 24 percent.
Transaction Amount ($):
Credit: Up 42 percent. Debit: Up 20 percent.
Airline Travel
Transaction Volume (#):
Credit: Down 48 percent. Debit: Down 54 percent.
Transaction Amount ($):
Credit: Down 69 percent. Debit: Down 60 percent.
Car Rentals
Transaction Volume (#):
Credit: Down 49 percent. Debit: Up 16 percent.
Transaction Amount ($):
Credit: Down 41 percent. Debit: Up 24 percent.
Barber, Beauty Shops and Spas
Transaction Volume (#):
Credit: Down 33 percent. Debit: Up 24 percent.
Transaction Amount ($):
Credit: Down 26 percent. Debit: Down 16 percent.
Hardware Stores
Transaction Volume (#):
Credit: Up 29 percent. Debit: Up 29 percent.
Transaction Amount ($):
Credit: Up 43 percent. Debit: Up 47 percent.
CO-OP will continue to monitor trends across its Credit and Debit portfolio and provide solutions to ensure credit unions have what they need to serve their members. For more information on how CO-OP can support credit unions throughout COVID-19, please visit www.co-opfs.org/covid19.
CO-OP Financial Services is a payments and financial technology company whose mission is ensuring the success of the credit union movement. CO-OP payments solutions, engagement services and strategic counsel help credit unions optimize member experiences to consistently provide seamless, personalized multi-channel offerings, while delivering secure, sophisticated fraud mitigation service. For more information, visit www.co-opfs.org.
Bill Prichard, APR
Director, Public Relations
CO-OP Financial Services
(909) 532-9416
Bill.Prichard@coop.org
