ETA/TSG U.S. Spending Snapshot: Overall Growth of Consumer Spending Via Electronic Payments Doubled Year-Over-Year in 2018

February 19, 2019 – WASHINGTON, D.C. – Growth in consumer spending via electronic payments like credit cards, debit cards and mobile wallets more than doubled year-over-year from the third quarter (Q3) 2017 to the third quarter (Q3) 2018, according to new analysis from the Electronic Transactions Association (ETA) and The Strawhecker Group (TSG). The ETA/TSG U.S. Spending Snapshot, released today, found overall spending via electronic payments in Q3 2018 grew 7.2 percent, more than doubling Q3 2017’s year-over-year growth rate of 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,” said Jared Drieling, Senior Director of Business Intelligence at TSG. “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.”

Year-over-year spending volume on gas increased dramatically as well, largely due to rising gas prices. Spending via electronic payments at gas stations grew 16.9 percent year-over-year, outpacing 9.8 percent year-over-year growth in Q3 2017. Despite higher gas prices, retail spending via electronic payments growth continued to outpace that of years prior. Spending grew 6.7 percent year-over-year in Q3 2018, up from 5.7 percent in Q2 2018 and 3.1 percent in Q3 2017.

“Our latest Spending Snapshot is indicative of consumer trust and confidence in their use of electronic payments products,” said Amy Zirkle, VP of Industry Affairs at ETA. “Consumers channeled their confidence into spending with electronic payment methods powered by ETA members.”

Other merchant segments to experience year-over-year growth in Q3 2018 include general merchandise and electronics stores. Merchants in the South experienced particularly robust year-over-year growth. The Southwest region posted 9.15 percent growth and the Southeast region posted 7.66 percent, outperforming the Plains (6.73 percent), Far West (5.84 percent), Great Lakes (7.24 percent), Mideast (6.82 percent) and New England (7.46 percent). Only the Rocky Mountains experienced higher growth, at 8.15 percent.

The ETA/TSG U.S. Spending Snapshot is a quarterly report that analyzes actual consumer spending at 3.7 million U.S. merchants, highlighting payment trends by both merchant categories and geographic breakdowns. The Snapshot uses the Strawhecker Group’s Acquiring Industry Metrics (AIM) platform, which spans over 3.7 million U.S. merchants with over $1 trillion of total annualized dollar volume and provides a comprehensive look at same-store sales and consumer spending behavior.

 

About ETA

The Electronic Transactions Association (ETA) is the global trade association representing more than 500 payments and technology companies. ETA members make commerce possible by processing more than $21 trillion in purchases worldwide and deploying payments innovation to merchants and consumers.

About TSG

The Strawhecker Group (TSG) is a fast-growing analytics and consulting firm focused on the electronic payments industry. The company serves the entire payments ecosystem, from fintech startups to Fortune 500 companies. The firm provides its clients with advisory services, research and analytics to help them plan and execute their strategic initiatives. Based in Omaha, a recognized payments industry hub, TSG is an established leader in this high-growth, ever-evolving space. For more information, please visit www.TheStrawGroup.com.