PSCU Payments Index July 2021: Deep Dive on Amazon Prime Day
Summary: As we introduce the fourth installment of the PSCU Payments Index, we find our country at a key inflection point in its battle against the COVID-19 pandemic – and its long-reaching effects on the U.S. economy. Despite these challenges, we continue to see positive signs of economic recovery and increased consumer spending and confidence. In the July 2021 edition of the PSCU Payments Index, we take a deep dive into this year’s Amazon Prime Day event, held June 21-22, as well as the competing events from major U.S. retailers Target and Walmart. We hope that the insights and demographic data from these events, one of the largest retail shopping periods of the year, will help our financial institutions make informed decisions and help keep their cards in the coveted top-of-wallet position for consumers.
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As we introduce the fourth installment of the PSCU Payments Index, we find our country at a key inflection point in its battle against the COVID-19 pandemic – and its long-reaching effects on the U.S. economy.
Despite these challenges, we continue to see positive signs of economic recovery and increased consumer spending and confidence. In the July 2021 edition of the PSCU Payments Index, we take a deep dive into this year’s Amazon Prime Day event, held June 21-22, as well as the competing events from major U.S. retailers Target and Walmart. We hope that the insights and demographic data from these events, one of the largest retail shopping periods of the year, will help our financial institutions make informed decisions and help keep their cards in the coveted top-of-wallet position for consumers.
Key takeaways include:
- No dramatic fluctuations in consumer behavior were seen in June, although consumer spending continues to show strength. Continuing uncertainty around the pandemic and the expiration of several pandemic-related benefits have some consumers taking a more cautious, “wait-and-see” approach.
- Card payments growth remains strong, supported by large retailer summer savings events (this month’s Deep Dive). Of the three large retailer summer savings events in June (Amazon Prime Day, Target Deal Days and Walmart Deals for Days), Target posted the biggest percentage of growth in year-over-year purchases over the comparative two-day Prime Day event period.
- Across all three merchants (Amazon, Target and Walmart) by age demographics, we see year-over-year purchases for the summer savings events strongest for Young Millennials (ages 23-30) and Gen Z (ages 18-22). See this month’s Deep Dive for more detailed purchase, transaction and demographic insights by retailer, which can help credit unions tailor personalized campaigns by membership age groups and card preferences.
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