CO-OP, Saylent track debit card purchasing via CO-OP Revelation; The Members Group reports credit spending with ClearTrend analysis tool
RANCHO CUCAMONGA, CA (December 10, 2014) — The Members Group (TMG) found that credit spending increased 12.97 percent and CO-OP Financial Services and Saylent found that debit spending increased 6.71 percent from Thursday-Monday of Thanksgiving Weekend compared to 2013.
CO-OP and Saylent Find Increase in Debit Card Spending
The finding of a 6.71 percent increase in debit card spending is based on transactions made from Thanksgiving Day, Thursday, November 27, through Cyber Monday, December 1. The results covered debit activity at 20 different merchant types nationwide by members of credit unions that use CO-OP for transaction processing. The year-over-year comparison was performed through an advanced analytics solution, CO-OP Revelation, powered by Saylent, and was conducted by Saylent’s FInsights360 consulting team.
“This year CO-OP and Saylent have tracked debit card spending during four periods – Valentine’s Day, Mother’s Day, August back-to-school shopping and now Thanksgiving – and we have found increases in each case,” said Stan Hollen, President/CEO, CO-OP. “As with back-to-school shopping, the increased number of transactions was key to the increase in total dollars spent.”
Additional data emerging from the CO-OP and Saylent analysis includes:
- Comparing 2013 to 2014, credit union members increased their debit card usage and spend most at cosmetic stores, with a close to 108 percent increase in transactions and a 98 percent increase in spend
- The following types of merchants also experienced strong growth compared to last year: family clothing stores, with a 27 percent increase in debit card transactions and a more than 21 percent increase in spend; and home furnishing retailers, with an 8 percent increase in debit card transactions and an increase in spend of more than 20 percent.
- People love their pets, increasing their debit card transaction volume by more than 13 percent and spending more than 20 percent more at pet stores than they did last year over this time period.
- The day with the largest increase in debit card spending compared to last year wasn’t Black Friday or Cyber Monday as one may expect but rather Thanksgiving Day, with an increase of 14 percent. This uptick may be reflective of the broader retail trend of opening in the afternoon and evening on Thanksgiving.
“Despite reports that shopping was down over this time period compared to last year, we found that debit card spending in fact increased across members of the credit unions we analyzed,” said Tyson Nargassans, President/CEO, Saylent. “This continues the trend we’ve seen throughout each of the time periods we examined this year, with credit union members increasing their debit card usage and spend compared to 2013.”
Credit Spending Also Up According to TMG Research
During the same Thanksgiving Day to Cyber Monday period, TMG found a 12.97 percent increase in credit spending for users who carry credit cards issued by TMG’s financial institution (FI) clients. TMG’s analysts attribute this to healthy growth in the credit card portfolios of TMG’s clients and the fact cardholders used their credit cards on average 1.35 percent more this year as compared to last year. The analysis is courtesy of the card processor’s proprietary analysis tool, ClearTrend. The tool can provide similar data on a per-FI basis for the processing clients of TMG.
“Our issuing partners want to understand transaction volume trends, yet they are also interested in data that demonstrates an evolution in the way consumers are paying,” said Shazia Manus, CEO, TMG. “Are they increasingly turning to digital channels, and when they are, which platforms are providing the best experience? These are just a few of the critical data points our credit union and community-based financial institution clients rely on as they develop new payment strategies for the future.”
Additional data emerging from the TMG analysis includes:
- Electronic spending (shopping from online and mobile devices with a credit card) increased 24.7 percent year-over-year.
- Given the increase in electronic spending, it was not surprising to see Amazon leading all other merchants in credit card spending. Cardholders carrying credit cards issued by TMG clients initiated 32.58 percent more transactions with Amazon this year as compared to 2013.
- Of the three days analyzed (Thanksgiving, Black Friday and Cyber Monday), Black Friday was the biggest day for credit card spending, accounting for 42.03 percent of all credit card transactions. On average, the transacting cardholder also spent more on Black Friday ($147.63) compared to Cyber Monday ($131.45) and Thanksgiving ($111.54).
- While many consumers may have been shopping for gifts, most appeared to be filling their pantries. Grocery stores and supermarket purchases comprised the greatest number of credit card transactions. This merchant category experienced a 21.83-percent increase over 2013 figures.
For more information on TMG, visit www.themembersgroup.com; for Saylent visit www.saylent.com; and for CO-OP Financial Services, visit www.co-opfs.org.
About CO-OP Financial Services
Based in Rancho Cucamonga, Calif., and founded in 1981, CO-OP Financial Services is the nation’s largest credit union service organization in terms of number of credit unions, assets and members. The company helps credit unions thrive by providing products and services that make it more convenient for members to do business with them. With a motto of “Be There. Be More,” CO-OP’s products fall into three business lines, including “Locations,” (ATM, shared branching and call center services); “Card Payments” (debit and credit processing) and “Mobile/Virtual” (mobile, online, check imaging, bill pay services). To learn more visit www.co-opfs.org.
Franklin, Mass.-based Saylent, named to Deloitte’s Technology Fast 500 list in 2014 and a three-time Inc. 5000 Fastest Growing Private Company (2012, 2013 and 2014), provides financial institutions with data analytics software and services that improve profitability and product innovation by delivering smarter, deeper, actionable insights on the financial behaviors of consumers and businesses. With Saylent’s solutions – Card360, which provides payments intelligence for card issuers; and Account360, a cloud-based relationship product and pricing platform – financial institutions are empowered to drive new revenue streams and increase loyalty by delivering programs and solutions that their customers and members desire. To learn more visit www.saylent.com.
The Members Group (TMG) is dedicated to creating customized, technology-driven card processing and payment solutions for credit unions and community-based financial institutions across North America. Innovations in fraud management, loyalty programs, alternative payment systems and analytic reporting, and the competitive advantages they create, have helped TMG forge a new standard in offering cutting-edge credit, debit, ATM, prepaid card products and a P2P payment solution. For more information, visit www.themembersgroup.com.