Electronic payments growth picks up steam, study finds

Retail spending via electronic payments grows 6.7 percent year over year in the third quarter of 2018.

Consumers turned to electronic payments at a faster pace in 2018, signaling rising trust and confidence in mobile wallets and other methods, according to new data from the Electronic Transactions Association and payments consulting firm The Strawhecker Group.

The Washington, D.C.-based global trade association reported that overall growth in consumer spending via electronic payments such as credit cards, debit cards, and mobile wallets increased by 7.2 percent for the third quarter of 2018 compared to the third quarter of 2017, when the year-over-year growth was just 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,” Strawhecker Group Senior Director of Business Intelligence Jared Drieling said. “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.”

The Electronic Transactions Association also reported that electronic payments at gas stations grew 16.9 percent for the third quarter of 2018 versus 9.8 percent growth in the third quarter of 2017. Retail spending via electronic payments grew 6.7 percent year over year in the third quarter of 2018 compared to 5.7 percent growth the same period in 2017.

Source: Credit Union Times