Think credit card transactions slow or decline in a down economy? Surprisingly or not, a recent study of global payment trends found that non-cash payments rose to 9% in 2008, up two percentage points from the previous year.
Developing economies like China had much faster growth rates of non-cash payments than already mature economies like the U.S. Respectively, growth in China was 29% compared to a mere 4% in the U.S., with credit cards accounting for more than 40% of non-cash payments. It was a substantial increase despite the tough economic times.
The one decline noted by the study was a decrease in the average of card transactions, which dropped from $57 from the previous average of $63, which means people were more conservative with their borrowing and spending.
Do these statistics surprise you? Why do you think credit card payments rose in a time of economic crisis? How does this affect your future plans?
Source: Cap Gemini, November 2010