Consumer Spending Via Electronic Payments Doubled Year-Over-Year in 2018, New ETA/TSG Report Finds
Growing consumer confidence resulted in more consumers reaching for their credit cards, debit cards and mobile wallets last year. Consumer spending via electronic payments more than doubled year-over-year from the third quarter (Q3) 2017 to the third quarter (Q3) 2018, according to new analysis from the Electronic Transactions Association (ETA) and The Strawhecker Group (TSG).
The report, released today, found overall spending via electronic payments in Q3 2018 grew 7.2 percent, more than doubling Q3 2017’s year-over-year growth rate of 3.5 percent.
“The third quarter of 2018 proved to be another strong period for electronic payments, as U.S. consumers continued to see economic benefits from tax reform and strong personal income growth,” said Jared Drieling, Senior Director of Business Intelligence at TSG in a press release. “Despite the rise in year-over-year gas prices during this time period, consumers remained confident and channeled their spending on discretionary items, as evidenced by the growth in retail categories.”
Rising gas prices spurred a dramatic increase in year-over-year spending volume on gas. Spending via electronic payments at gas stations grew 16.9 percent year-over-year, outpacing 9.8 percent year-over-year growth in Q3 2017. Despite higher gas prices, retail spending via electronic payments growth continued to outpace that of years prior. Spending grew 6.7 percent year-over-year in Q3 2018, up from 5.7 percent in Q2 2018 and 3.1 percent in Q3 2017.
“Our latest Spending Snapshot is indicative of consumer trust and confidence in their use of electronic payments products,” said Amy Zirkle, VP of Industry Affairs at ETA. “Consumers channeled their confidence into spending with electronic payment methods powered by ETA members.”
Other merchant segments to experience year-over-year growth in Q3 2018 include general merchandise and electronics stores. Merchants in the South experienced particularly robust year-over-year growth. The Southwest region posted 9.15 percent growth and the Southeast region posted 7.66 percent, outperforming the Plains (6.73 percent), Far West (5.84 percent), Great Lakes (7.24 percent), Mideast (6.82 percent) and New England (7.46 percent). Only the Rocky Mountains experienced higher growth, at 8.15 percent.
The ETA/TSG U.S. Spending Snapshot is a quarterly report that analyzes actual consumer spending at 3.7 million U.S. merchants, highlighting payment trends by both merchant categories and geographic breakdowns. The Snapshot uses the Strawhecker Group’s Acquiring Industry Metrics (AIM) platform, which spans over 3.7 million U.S. merchants with over $1 trillion of total annualized dollar volume and provides a comprehensive look at same-store sales and consumer spending behavior.
Click here to read the press release.
