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Spending credit card use online decreases 11
RYE BROOK, N.Y. (7/24/09)--Overall consumer spending online for the third quarter is projected to decrease 11% to an average $277, reports a new study. That amount compares to an average $255 last quarter and $346 during third quarter last year, says the quarterly eBillme Online Spending Index conducted by Javelin Strategy & Research. The index indicates that "the recession is still impacting consumer spending and payment decisions," said Bruce Cundiff, director of payments research and consulting at Javelin. He noted that 57% of consumers plan to delay purchases because of the uncertainty in the economy. "This is almost a 20% increase from this time last year," he said. Credit unions should note another decline in credit card spending. Of those consumers surveyed, 33% expect their credit card usage to decline during the next 90 days--an increase from 25% during third quarter 2008. Half of the consumers plan to permanently reduce their use of credit cards because of changes in the economy and the new credit card legislation. "There is a visible shift in credit card usage as compared to third quarter 2008," said Marwan Forzley, president/CEO of eBillme, an online banking payment option for consumers and small businesses. "We continue to see evidence of more cash spending on our merchant sites and expect that spending and lifestyle changes will extend far beyond those economic conditions," Forzley added. Other findings:
* Consumers between the ages of 18 and 24 are twice as likely to do their back-to-school shopping online, compared with the overall consumer average of 12%. * Twenty percent of Hispanic consumers indicated they will shop online for back-to-school purchases, which was higher than the overall average.
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