After a little over thirty days with all credit card transactions experiencing a drastic decline, new data reveals that Brits couldn’t wait to be out and spending again in the month of May.
According to the statistics made available by Reserve Bank, the total amount of money spent in credit card online casinos rose by a whopping 54 per cent from April to May 2020, to the tune of $3.2 billion. That came shortly after there was a recorded 41.3 percent drop between the months of March and April, making the most significant fall ever recorded. In April, just $2.1 billion of spending was put on credit cards.
Despite the lift, it was noticed that credit card spending remained 21 per cent lower than what was recorded in May 2019.
The cumulative value of electronic card spending, which includes the two non-retail categories (other non-retail and services) was down 13 per cent ($1 billion) when compared with May 2019. The non-retail category (excluding services) was recorded down by 33 per cent ($626 million), while the services category was also down by 18 per cent ($59 million).
In May 2020, cardholders made a total of 116 million transactions across all industries, with each transaction having an average value of $58. The total amount of money spent via electronic cards was about $6.7 billion.
However, In seasonally adjusted terms, it is estimated that there was a rise in retail card spending in the month of May 2020 by a total of $2.3 billion ( which is 79 percent) when compared to April 2020.
The Importance of Credit Card Statistics
You may wonder why it is essential to provide credit card statistics. Well, when you are making transactions with a credit card, you are knowingly borrowing money from the bank to make payments for the goods and services you purchase. Then, you will have to pay the loan off by the end of the month when your salary hits your account.
Credit cards statistics shows user behaviour and spending habits per season and events. This helps you understand why and how people choose to make credit card transactions when certain key factors like a pandemic, recession, and others are at play.
The statistics featured in this article explains how British customers carried out more payments for goods and services via credit card in the month of May amid the global health crisis. This rise comes after a massive decline in the months before.
Brits Started to Spend More
Available data suggests that UK’s credit card debt had catapulted from $5.7 billion to a whopping $6b in May. That would be the first time it fell below $6b since the year 2013.
According to information from comparison site Finder, data shows that 17 percent of Brits claim they could not manage their finances in the absence of a credit card.
The same data showed that Aucklanders happen to be the most likely to transact with a credit card daily.
Finder’s publisher in the United Kingdom, Kevin McHugh says that After the lockdown brought about by the pandemic, it is a great relief to know that things are gradually going back to normal, and that includes spending levels.
Kevin added that with pubs, restaurants and shopping precincts now fully open for business, many people are excited to open their wallets after months of being locked indoors and going without.
Brits are behind to experience steady economic improvement as the restrictions are gradually eased, which is quite crucial after the catastrophic first quarter of 2020.
Kevin further adds that it is great to be out and about after many months of being stuck indoors, and consumer spending is even more important to the British economy now than ever before.
However, though UK consumers began to spend more, they were able to reduce their credit card spending during the lockdown, which reveals that it is possible to cut back on credit card debt and switch to some alternatives that don’t provide a “Cash Advance” option.
Thus, Kevin advises that those who would rather use credit should make sure they opt for a card that works perfectly for them.
Infometrics economist Gareth Kiernan stated the numbers included some of level 3 when there were restrictions on options to spend money.
Per Gareth, June was meant to offer a better indication of what was going on, he said, and other data suggested that spending had returned to level “more or less” where it used to be a year earlier.
What is likely more interesting is that it doesn’t reveal any widespread spike in post-lockdown spending that some people had earlier talked about.
That was consistent with the job market and the state of the economy, he added but meant that there was no “catch-up” for the businesses that struggled to stay afloat through level 4.
