US Credit and Debit Cards Spend Up to 21% – Rental Transactions
Data shows July consumer spending on credit and debit cards rose 21% nationwide, according to new market data released by The Strawhecker Group (TSG), an analytics firm and specialized consultancy in the payment acceptance sector.
Additionally, compared to July 2019 to account for the influence of COVID, spending has increased by almost 20% when considering a two-year compound annual growth rate (CAGR).
Various industries contributed to the two-year growth in credit and debit cards in July (2021 vs. 2019, two-year CAGR). Car rental agencies are among the best performing sectors with + 48%.
Among the more than 250 industries monitored by TSG, other high performing industries included:
- Non-financial institutions, including cryptocurrency (+ 81%)
- Aquarium (+ 51%)
- Sporting Goods Stores (+ 48%)
- Video rental stores, including streaming services (+ 41%)
- Grocery, e-commerce only (+ 38%)
- Retail, e-commerce only (+ 34%)
- General construction (+ 33%)
- Air and land freight, excluding government postal service (+ 30%)
- B2B – Durable goods distributors (+ 29%)
“The two-year comparison shows that the positive winds for the US economy as well as the payments industry are apparent and significant,” said Mike Strawhecker, president of TSG. show the attractiveness of these markets. Consumer spending accounts for 70% of US GDP, and 70% of consumer spending is electronic. This underscores the fact that the payments ecosystem is the backbone of the US and global economies. ”
According to TSG, many high-growth sectors could benefit from the shift in consumer preferences to digital products, the shift in new volume from check to card, as well as the proliferation of e-commerce spending. In addition, a study by TSG and Visa found that 26% of consumers expect to use cash less frequently than before the pandemic.
TSG predicts that the largest industrial groups in construction, B2B, personal services (e.g. landscaping services) and utilities will outperform the market in the near term – driven by consumer demand and conversion to card payments.
Geographic performance also varied from state to state, with Nevada, South Carolina, Delaware and Arkansas all registering growth of over 25% compared to July 2021 to July 2019.