Key takeaways include:

For September, year-over-year growth rates were at their lowest levels for 2024. Debit purchases were up 1.3%, with two-thirds of the growth coming from Money Services (Cash App, Venmo, Zelle, etc.). Credit purchases were down 1.6%, with half of the reduction coming from the Gasoline sector (0.9%). Debit transactions were up 1.5% and credit transactions were up 0.6% year over year.
Multiple survey measures reported declines in consumer confidence, increases in delinquencies and overall consumer stress, which may potentially constrain spending during the upcoming 2024 holiday period.
Money Services, mainly comprising P2P payments, continued to provide strong growth for debit card purchases, resulting in an increase as a percentage of overall debit card purchases. For September, growth in Money Services debit purchases was up 9.6% year over year. As a percentage of overall debit card purchases, Money Services represented 12.2% for September 2024, up from 11.2% a year ago.
The September delinquency rate was up 15 basis points compared to August 2024, reversing its August improvement and resuming a multi-month trend of increases. Delinquencies are now at their highest point since January 2024.
Contactless transactions on dual interface cards continued to show significant growth. As of September, almost one out of every two Card Present transactions were tapped (50% for debit and 47% for credit).

What should credit unions do now?

P2P solutions continue to gain popularity with consumers as an alternative to cash payments. While solutions such as Venmo and Cash App aid in building debit card utilization, consideration should also be given to solutions like Zelle, which can be integrated into credit unions’ digital banking suites, offering consumers greater protection than third-party apps.
With holiday shopping beginning in October, credit unions should focus card marketing efforts around holiday spend. Promoting awareness of card features and benefits, as well as implementing targeted card usage strategies, are vital to ensuring card-of-choice designation.
Contactless transactions on dual interface cards are fast becoming the preferred method of paying in person. For debit and credit, nearly 50% of all transactions are tapped. Issuers should prioritize availability for their cardholders.
Now is the time to begin planning a spring convenience check marketing campaign. Contact your Client Growth Executive for details (deadline for March enrollment is Dec. 15).

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