CU credit card transactions up nearly 50% during Prime Day: CO-OP reports

Posted: Aug 7, 2019 | Author:

“Credit union issuers must take steps to engage the growing number of Amazon Prime members ..."

Credit and debit card transactions were up big for many credit union card issuers during Amazon’s Prime Day event on July 15 and 16, and the implications could be profound for card issuers and retailers, according to new data from CO-OP Financial Services.

The company said the number of Prime Day transactions inside the CO-OP credit card portfolio spiked 48.6% compared to 2018, and debit transactions for the company’s CU card issuers rose 21% year over year. The total dollars spent on credit and debit cards was up 33%, it added.

“Credit union issuers must take steps to engage the growing number of Amazon Prime members, as they represent a massive opportunity to secure top-of-digital-wallet status,” said CO-OP Senior Portfolio Advisor and Card Marketing Strategist Kaitlyn Summitt-Nelsen. “Credit unions owe it to their members to explain the benefits of selecting their card as the default on Amazon and other online retailers. Many of our partners are finding rewards and other promotions to be a great way to open that dialogue.”

CO-OP said some of the activity increase during Prime Day was due to increases in the number and size of credit unions that process with the company, but certain types of Amazon purchases were also especially popular, including books (up 50%), specialty retail stores (up 84%), computer and network services (up 184%) and subscriptions (up 88%). Consumer purchases of large digital goods, such and Echo, Kindle, and Fire TV devices, fell 44%.

More notable; however, may be the effect that Prime Day seems to be having on other retailers.

According to CO-OP, Walmart.com purchases in the CO-OP portfolio on July 15 were up more than 163% compared to one day earlier, for example.

“It is interesting to see Amazon transform an e-commerce shopping holiday to an omnichannel extravaganza,” CO-OP President and CEO Todd Clark said.

“As credit unions increase their command of digital delivery, they must be strategic about the interplay between physical, digital, experiential, or other channels,” Clark added.

Source: Credit Union Times

CO-OP Financial Services is a five-star premier business partner of Credit Union Resources, Inc., a wholly owned subsidiary of Cornerstone Credit Union League.