Global payment platform provider Splitit has released new data finding that consumers are still spending online during the COVID-19 pandemic, but they are looking for responsible ways to manage their money on their own terms.
Based upon an analysis of hundreds of thousands of global transactions from retailers from over 30 countries, Splitit, which offers shoppers to pay in installments via their credit cards, found that consumers continued to purchase goods for their homes, including homewares and mattresses, and health, while spending significantly less on luxury purchases.
Splitit’s analysis looked at transactions during the period of 15 March 2020 to 10 April 2020 as compared to the previous 12 months. The data revealed an effort to conserve cash, with a 20% shift in payment mix towards credit card usage over debit card usage.
Consumers are also opting for flexible spending options, with a 40% increase in the number of installments selected at checkout, increasing payments from 5 months to over 7 months.
“Consumers are continuing to spend during this time, though the categories and channels where people spend have clearly shifted. It’s essential for businesses to respond to what consumers are asking for, which are more ways to responsibly manage cash flow,” said Brad Paterson, Splitit CEO.
“There is an opportunity for the payment industry to help consumers manage their finances without saddling them with more long-term debt, empowering them to better control and use the credit they have and take ownership of their expenses. The data also suggests consumers are prioritizing creating healthy, comfortable and connected environments as they continue to follow ‘stay-at-home’ orders.”