In the fourth quarter of 2022 bank card volumes showed a slow down of about 4%. Card volumes refers to the bank credit and debit cardholder’s spending amounts during the quarter. This data while not an exact correlation is indicative of trends for the US payment volumes at Mastercard and Visa. The data suggests that consumers are feeling the pinch caused by inflation and have begun to rein in spending. Banks continue to grow but at a slower pace. JPMorgan Chase experienced 9.3% growth compared to 25.7% one year earlier, while well Fargo saw 3% growth, down from 18.4% in Q4 2021.
The adoption by consumers of other forms of payments like Buy now, Pay Later (BNPL) and peer-to-peer payment options has also taken a substantial bite out of bank card volumes. About 80% of merchants now offer P2P payment methods, and 55% of consumers have used that payment method to purchase good and services. Almost half of consumers used BNPL when making online purchases last year.
As the payments industry continues to change and introduce new payment methods, businesses continue to look for ways to save on credit card processing fees, and still offer consumers a way to save. FEEPASS, our flagship product can help business eliminate credit card processing fees, and help them save. For more information contact us today.