• Home
  • Community Banks
  • Merchants
  • News
  • Home
  • Community Banks

    Community Banks

    We take pride in creating a merchant services program that complements each of our partners’ unique circumstances within its respective community, all while maximizing the program’s efficiency and revenue opportunities.

    About the Program

    Bank Home
    Dashboard
    Program Overview
    Marketing Resources
  • Merchants
  • Contact Us

    Contact Us

    Our industry-leading service team and business consultants are just a phone call or click away. 

    p:  330.702.8415
          800.487.5577
    f:   866.476.8416

    A small number of callers are experiencing issues when dialing our 800 number. If you cannot connect, please try calling our secondary number at 330.702.8415, contact us via email at info@finet.net or use the contact form at the bottom of the page. 

    info@finet.net

    Facebook Twitter Youtube

    Business Hours

    Monday – Friday: 8:30am – 5:00pm ET

    During off-hours, support for emergency issues is available by calling the 24/7 help desk for your specific processor or equipment provider. Consult your program documentation or terminal hardware for the appropriate contact information.

  • Home
  • Community Banks

    Community Banks

    We take pride in creating a merchant services program that complements each of our partners’ unique circumstances within its respective community, all while maximizing the program’s efficiency and revenue opportunities.

    About the Program

    Bank Home
    Dashboard
    Program Overview
    Marketing Resources
  • Merchants
  • Contact Us

    Contact Us

    Our industry-leading service team and business consultants are just a phone call or click away. 

    p:  330.702.8415
          800.487.5577
    f:   866.476.8416

    A small number of callers are experiencing issues when dialing our 800 number. If you cannot connect, please try calling our secondary number at 330.702.8415, contact us via email at info@finet.net or use the contact form at the bottom of the page. 

    info@finet.net

    Facebook Twitter Youtube

    Business Hours

    Monday – Friday: 8:30am – 5:00pm ET

    During off-hours, support for emergency issues is available by calling the 24/7 help desk for your specific processor or equipment provider. Consult your program documentation or terminal hardware for the appropriate contact information.

Covid-19  ·  Payment Trends

Anticipating the consumer spending rebound

FiNet
April 21, 2020

The coronavirus pandemic winds on, and while it seems like it’s been forever, when — and not if — we emerge from all this, consumer spending will be altered.

In an interview with Karen Webster, Chuck Fagan, president and CEO of PSCU, a credit union service organization (CUSO), said that the impact to consumer spending will be prolonged, but the recovery will be swift and sharp — depending on where you look.

Overall credit card spend was down 29.9 percent and debit card spend was off 18.1 percent year over year as measured by PSCU for the 13th week of the year (week of March 23, 2020, compared to week of March 25, 2019). Even grocery spending growth slowed to 25 percent on credit cards and 10 percent for debit cards, which gives a nod to the fact that consumers are likely “fully stocked up.” Overall spending on consumer goods was down more than 18 percent as measured across credit cards, and almost 18 percent for debit.

Fagan said the numbers reflect a shift in consumer confidence about their own economic well-being, and as a result show prioritization in how and where they spend. Debit is continuing as the preferred payment form over credit, reflecting a persistent caution about leverage as job losses mount.

From a higher level, he said, “I think the further we go on, the less relevant year-over-year comparisons are going to be. Spending has just really plummeted, especially in the areas around restaurants and certainly the travel and entertainment industries. There’s uncertainty as to not only how long this will take, but what the new world will look like when we come out of this.”

Fagan said that financial institutions (FIs) of all stripes — and especially credit unions (CUs) — have stepped up to offer a range of programs aimed at supporting small businesses and consumers, including the opportunity to delay mortgage payments and credit card payments. In other cases, said Fagan, CUs have increased credit lines.

“These customers can feel like they have a partner in their credit unions,” he noted, adding that CUs, mindful of their members’ struggles, have asked PSCU’s collections department not to make calls, and will likely give struggling consumers a range of payment options to help them get caught up.

What’s Different This Time?
There may be echoes of 2008 in the current crisis, said Fagan, with the unemployment spike and looming credit crunches. But he predicted the spending pause taking root in consumer goods (where inventories at home have been built up rather quickly) and in restaurants will see a speedy recovery.

A natural progression will take place amid that recovery, he said, as jobs return and the trillions of dollars in stimulus help underpin that recovery.

There will be a broadening of business models, Fagan noted, with offerings across several channels. While there may not be a rush to go to crowded restaurants immediately, there will be a growing confidence to order takeout.

And while there may not be a surge in grocery aisle foot traffic, there will likely be more confidence in having groceries delivered. Clothing sales, which have been down as much as 70 percent, will likely see a resurgence as we head toward back-to-school season in the fall and as colder temperatures return. Even spending at the pump, down as much as 50 percent at the end of the month, will grow again as we take to the roads after the stay-at-home era ends.

The laggard industries will still include travel and hospitality, Fagan predicted — particularly international travel.

Individuals and families will likely tiptoe back into buying large-ticket items like cars, even as dealers start offering online services to spur new vehicle sales and financing.

The Shift In Payments
As businesses shift toward offering new ways to get their products to consumers, there will be heightened movements to offer contactless and digital payments at the point of sale (POS), said Fagan.

He pointed out that PSCU has been working with CUs to help optimize where they are spending their innovation dollars — insight that will help them structure loyalty plans and near-term roadmaps to enhance contactless offerings as consumers move away from cash transactions.

And the shift away from cash may help mobile wallets, said Fagan. He noted that CUs had been early to offer Apple Pay, Android Pay and other options, but initial adoption was limited.

“There was a big rush to enroll, but transactions didn’t really follow suit,” he told Webster.

With contactless payments, Fagan said, there will be a re-examination of these technologies that have been waiting to take off — especially for lower-dollar-value transactions, which have thus far been primarily done in bills and coins.

“We’ll see it from the transactional side because the merchants have enabled it,” Fagan said, predicting that “we’ll see accelerated use across digital and mobile banking, too.”

SOURCE: PYMNTS.com


Contactless payments skyrocket because no one wants to handle cash
Previous Article
How businesses are redesigning payments to survive the pandemic
Next Article

7355 California Avenue
Boardman, OH 44512
p: 330.702.8415
    800.487.5577
f: 330.702.8416
    866.476.8416

© 2023 FiNet, Inc.

FiNet is a registered ISO/MSP of BMO Harris Bank NA

Privacy Policy
Envelope Facebook-f Twitter Linkedin Youtube

Community Banks

Community Banks Home
Program Overview
Dashboard
Marketing Resources

Merchants

Processing Services
Business Mgmt/Payments
Retail POS Systems
Additional Solutions
FREE Cost Analysis

Company

Contact Us
Click to access the login or register cheese
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}