The latest SpendTrend report shows that all electronic payment methods were up last month, while check use continued to fall. Two trends are emerging that indicate customers’ payment preferences – debit PIN processing has grown at double-digit rates for the past two months and checks have declined consecutively.
Payment processing growth in March was slightly slower than it was in February, down 0.2 percent from February’s 8.9 percent rate. The report credits warmer-than-expected temperatures and sales from the Easter holiday for driving consumer traffic to a store’s credit card terminal despite rising gas prices.
Debit PIN transactions increased the most of all the payment methods, up 14.6 percent. Signature debit followed with 8.4 percent growth. Findings from the report indicate that increased use could be the result of more taxpayers opting to have tax refunds directly deposited into their bank accounts this year. Consumers who used the extra money for discretionary purchases could have driven the increase.
A recent study by Moody’s indicates that gains won’t stop there. The company’s research indicates that the credit card sector is positioned for growth, especially among the big six companies – Discover, American Express, Capital One, Citigroup, Bank of America and JP Morgan.Back To Blog