PSCU Payments Index October 2021: Deep Dive on Credit Card Delinquencies
Summary: In the October 2021 edition of the PSCU Payments Index, we continue to see a combination of optimism and uncertainty within the U.S. economy – and the related effects within the payments industry. With COVID-19 hospitalizations on the decline and new non-vaccine-based medicines on the horizon, consumer spending remains strong as we enter the holiday shopping season. Yet, there is increased uncertainty as labor and supply chain shortages, as well as surging fuel prices, are projected to impact ongoing economic recovery.

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In the October 2021 edition of the PSCU Payments Index, we continue to see a combination of optimism and uncertainty within the U.S. economy – and the related effects within the payments industry. With COVID-19 hospitalizations on the decline and new non-vaccine-based medicines on the horizon, consumer spending remains strong as we enter the holiday shopping season. Yet, there is increased uncertainty as labor and supply chain shortages, as well as surging fuel prices, are projected to impact ongoing economic recovery.
This month, we present a deep dive into credit card delinquencies, which have declined throughout the pandemic, aided by government stimulus funds. We hope that the insights from this new Payments Index, along with the included demographic and credit score data, help our financial institutions continue to make informed decisions as we approach the holiday season.
Key takeaways include:
- Consumer spending remained strong for both credit and debit purchases, while concurrent declines were reported in the September Consumer Confidence Index, dropping for the fourth consecutive month.
- Credit card delinquencies have declined through the COVID-19 pandemic, influenced by the three stimulus/ recovery payments, and are now 61 basis points lower than 2019 pre-pandemic delinquency rates.
- Amazon has officially started the holiday shopping season with sales beginning on October 4 – even earlier than 2020, when Amazon’s Prime Days sale shifted from the summer to October 13-14.
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