COVID-19 significantly impacts the consumers’ spending behaviors
GlobalData revealed that Ireland’s cash payments have declined by 57%. Along with that, the total value of payments is expected to grow at a compound annual growth rate (CAGR) of 3.3% by 2023. This is largely down to cash ATM withdrawals forecasts changing from 0.8% to -2.2%.
The report highlighted that the country is particularly reliant on its tourism sector, which has come to a halt due to the pandemic. For instance, travel and accommodation accounted for 36% of the country’s total credit card transaction value last year. At the same time, Ireland’s central bank expects the distribution, transport, hotels, and restaurants to be damaged the most.
Besides, loss of income and increased unemployment will have long-term implications affecting several sectors. The reduced economic activities are already showing the impact on card spending.
The data unveils that the number of debit payments dropped by 33.6% and 29%, in terms of volume and value, respectively. Nevertheless, card usage is expected to recover once the lockdown is lifted.
We’ve reported that the UK future sentiment index dropped in April to the lowest level seen since tracking began in April 2012. The reason for that is pessimistic feelings around the future of the country’s economy, bringing bad news for retailers that will be expecting a post-lockdown increased expenditure.