Consumer spending online during the five-day period that started with Black Friday (Nov. 26) grew by double digits compared with the same period in 2009, merchant processor Chase Paymentech Solutions LLC announced.
Paymentech monitors daily settlement activity for 50 of the largest 250 Internet retailers. The company tracks average ticket amounts and sales and transaction volumes.
For the five-day period, the Paymentech Pulse Index saw a 36.5% increase in transaction volume, to 24.3 million from 17.8 million, and a 30% increase in sales, to $1.3 billion from $1 billion.
Cyber Monday experienced the biggest sales-volume increase during the five-day period, rising 73.4% to $361.9 million from $208.7 million. Transaction volume totaled 4.8 million, up 60% from 3 million in 2009
Cyber Monday has come into its own as one in which many online retailers offer major promotions, says Aaron Press, Paymentech director of market analysis. “Consumers are getting their Black Friday deals Monday” without having to battle crowds at retail locations, he notes.
The data show only a small piece of Paymentech’s clients and the market in general, Press adds.
Tuesday, Nov. 30, when many Cyber Monday and weekend purchases settled, set a single-day record for both transactions and sales, Paymentech notes. Transaction volume reached 7.2 million, up 14.3% from 6.3 million in 2009, while sales rose 6.4%, to $400.5 million from $376.5 million.
Black Friday saw the largest single-day percentage increase in transaction volume during the five-day period, rising 86.4%, to 4.1 million purchases from 2.2 million in 2009.
Between Nov. 4 and Nov. 30, transaction volume was up 35.5%, to 103 million from 76 million during the same period in 2009, while sales were up 25%, to $5 billion from $4 billion, Paymentech says. The average ticket price, however, was down 7.6%, to $48 from $52. More digital sales and early merchandise discounting likely attributed to the decline, Paymentech speculated in a press release.
Earlier this week, PayPal reported a 27% increase in total Black Friday payment volume it processed online compared with the same day last year (see story).
While Black Friday weekend sales showed increases in overall transaction activity, purchases made using credit and signature-debit cards at “Main Street” small businesses declined 1%, New York-based financial-technology company Capital Access Network Inc. reported Dec. 3. Capital defines Black Friday as the Friday through Sunday after Thanksgiving.
“On the one hand, we have better reported sales figures, which correlate with the performance of our subsidiaries’ portfolios, as well as the Commerce Department’s recently reported declines in personal savings rates,” Glenn Goldman, CEO of Capital Access, said in a statement. “On the other hand, we have reduced credit card spend figures, which track with the Federal Reserve reported declines in revolving consumer credit available.”
Consumers appear willing to spend more this holiday season but are doing so with cash and PIN-debit cards, Goldman adds.
Capital Access did not include figures in its report, and executives at the firm were unavailable for further comment.