MIAMI , July 2, 2020 - Visa Inc. (NYSE: V) presented an analysis conducted by Visa Consulting & Analytics (VCA), a Visa strategic consulting team for clients, which reveals that in the Latin America and Caribbean region* the number of e-Commerce transactions made in May, versus the average number of those made in January and February 2020, posted a growth of 6 percentage points in the consumer spending category of essential items, which includes food, general merchandise, medical expenses and groceries; and an increase of 8 percentage points in the number of debit transactions made via e-Commerce in the region.
The annual percentage change in the number of transactions made online versus the number of transactions made in person was 5.8 times higher in May 2020 when compared to the average for January and February 2020, showing an acceleration in the use online digital payments by cardholders in the region during the analyzed period of the COVID-19 pandemic.
“The analysis shows three mega trends in the spending habits of cardholders in the Latin America and Caribbean region during the COVID-19 pandemic: the acceleration in the adoption of e-Commerce, the prioritization of purchases of essential goods and services, and the increase in the number of debit transactions in the e-Commerce environment”, commented Javier Vázquez, regional head of Visa Consulting & Analytics for Latin America and the Caribbean. “The analysis of digital payment trends coupled with Visa’s know-how helps to support financial institutions and businesses in understanding the priorities and improving the payment experiences of consumers, particularly during these times of changes generated by the COVID-19 pandemic."
Consumer spending trends
The consumer spending categories that registered the greatest impact in Latin America and the Caribbean, based on the number of transactions made during the week of May 31, 2020 versus the same week in 2019, were:
· Positive impact: Digital goods (gaming, apps, and books/movie/TV streaming); Recurring Payments (cable, satellite TV, radio, utilities, gas, merchant subscriptions); and Professional Services (cleaning services, construction, delivery/storage/moving, Financial Services, Legal Expenses)
· Negative impact: Airlines, Travel Expenses, Car Rentals and Transportation.
The analysis also makes it possible to identify two trends that illustrate signs of recovery in the retail category including department stores, clothing, and electronics:
· Retail sales was one of the consumer spending categories with the largest percentage change from face-to-face transactions to online transactions during the month of May 2020 compared to the average transactions made in January and February 2020 in Latin America and the Caribbean.
· The number of retail sales transactions (both face-to-face and online) increased from its lowest point in the week of March 22 to the week of May 31, 2020, driven by a shift to online shopping. The online retail sales consumer
spending category grew 23 percentage points in May 2020 compared to the average levels posted in January and February 2020.
"For Visa cardholders, having the ease, flexibility and security of buying and paying for their purchases online at times like these is of paramount importance," added Javier Vázquez. "As the payment method is an essential part of the checkout process, both financial institutions and businesses have made it their priority to improve the consumer experience by offering innovative forms of payment that are fast, secure and convenient."
Visa is committed to continue working and innovating on its payment solutions to provide Visa cardholders with increasingly convenient, streamlined and secure payment experiences, both when making transactions through virtual channels as when making contactless or practically friction-free payments at physical points of sale. The Visa Consulting & Analytics (VCA) team, a group of consultants and experts in payment methods, works together with its clients, including acquirers, issuers and merchants, to identify opportunities for improving their performance and profitability. By combining knowledge of the payments industry with a strategic vision, VCA leverages its expertise in Data Analytics to develop innovative solutions that enable its clients to grow their business, understand their consumers and optimize their resources.