Substantial Increase in Credit Card Use During Last 12 Months
Credit card use has taken a significant jump in the past year, according to new research from First Data Corp. From May 2013 to May 2014, credit card usage increased 4.9%.
During that same time, PIN debit card jumped by 4.2% and signature debit card usage went up by 3.7%. Use of prepaid cards increased by 2.4%
The First Data SpendTrend analysis also indicated a large decline in check writing over the last year. The reports show a 5.1% decrease in checks usage during that same time period.
Total retail spending in May saw its strongest growth rate in seven months, and most of that was driven by a 6.7% boost in the purchase of building materials and supplies. Another 1.4% increase occurred with home furnishings merchants. The big ticket purchases at these stores are often paid for via credit card.
“A number of factors, including normalized weather, pent-up demand, falling unemployment and rising home prices supported consumers’ willingness to spend in May,” said Krish Mantripragada, Senior Vice President of information and analytics solutions at First Data. “Credit card spending growth continued to be strong and led all other payment types.”