Prepaid Spending up Amid Slight September Slowdown (Oct. 14, 2014)
Prepaid was a bright spot for spending dollar volume growth at 5.7 percent compared an overall drop in same-store spending growth, which came in at a 3.1 percent increase year-over-year compared to a 3.9 percent year-over-year jump in August. Credit also jumped 5 percent over the period between Sept. 2-30, 2014, compared to Sept. 3-Oct. 1, 2013, with debit lagging—signature and PIN combined for a 3 percent gain. The figures from the latest First Data SpendTrend analysis track same-store POS data by credit, signature debit, PIN debit, EBT, closed-loop prepaid cards and checks at nearly 4 million U.S. merchant locations serviced by First Data.
Lower gas prices along with declining back-to-school shopping activity contributed to the drop in gains over August. However, dollar volume growth was up in categories including building material and garden equipment and supply dealers, and furniture and home furnishings, at 4.9 and 2.5 percent, respectively, reflecting a steadily expanding job market and stabilizing housing market, according to First Data.