CO-OP Financial Services Reports Debit and Credit Transactions Rose 51% on Amazon Prime Day
The Strategic Link partner says now is the time for credit unions to incentivize and remind members to use their preferred cards to shop.
Amazon Prime Day saw strong sales this year, with total transactions and dollar amounts on Amazon increasing by more than 51% for both credit and debit charges compared to 2019.
According to data collected and analyzed by Strategic Link partner, CO-OP Financial Services, total credit and debit transactions on Amazon increased 51.2% comparing Oct. 13-14, 2020 (Amazon Prime Day 2020) with July 15-16, 2019 (Amazon Prime Day 2019). The total dollar amount spent on credit and debit purchases during the same two two-day periods showed a 51.4 percent increase in 2020 compared to 2019.
In total, according to ROI Revolution, “Digital Commerce 360 estimates that Amazon Prime Day 2020 sales hit $10.4 billion — up from $7.16 billion (+45.2%) over Prime Day 2019 and from $4.19 billion (+148.2%) over Prime Day 2018.”
Even so, Amazon Prime Day’s economic impact may not be as markedly significant as in years past. CO-OP’s analysis points to a general trend toward ecommerce during the pandemic. Since April, Amazon credit card transactions in 2020 increased by 48% compared to 2019.
In addition, CO-OP found that Amazon Prime Day 2020 actually had a more significant impact with debit transactions, which saw a 79% increase from the day prior (Oct. 12). For credit transactions, Amazon Prime Day 2020 only saw a 33% increase from the day prior.
“This is meaningful in the payments space because it demonstrates credit card holders are leveraging their credit cards for their daily Amazon transactions in ‘essential’ categories,” said Beth Phillips, Director of Strategic Portfolio Growth for CO-OP. “Meanwhile, debit cardholders demonstrated a higher response rate during the big event, most likely for larger or wish list items.”
An additional way of looking at Amazon Prime Day 2020 results is to examine bookstore credit card transactions, the largest Amazon merchant category, comparing Oct. 13-14, 2019, to Oct. 13-14, 2020. CO-OP found transactions up 77%.
“This means it is more important than ever for credit unions to educate their cardholders on how to place your card in their accounts at their online retailers, then remind and incentivize them that your card should be their preferred card,” said Phillips.
To help credit union executives, CO-OP Financial Services commissioned Filene Research Institute to study the socioeconomic and technological changes expected to have the greatest impact on consumer behaviors and preferences. The study, titled “Payments, Personal Financial Management and Prospects for Credit Union Growth” is available here.
“The increase in ecommerce totals throughout the pandemic supports our belief that enabling digital payments for members is the path to growth,” said Todd Clark, President and CEO of CO-OP. “Encouraging members to have your card top-of-wallet for events like Amazon Prime Day and Cyber Monday leads to deeper penetration, usage and engagement with your credit union. Even if you weren’t able to put together a campaign ahead of Amazon Prime Day, we anticipate that given the close proximity between Amazon Prime Day and the holidays, this year we’re going to see a prolonged spending boost that will last over the next several weeks.”
To learn more about CO-OP Financial Services, visit its booth at the virtual Strategic Link Trade Show. Visit during live hours on Nov. 17, from 11 a.m. to 1 p.m. PDT (noon to 2 p.m. MDT), to chat directly with the CO-OP team. During the month of November, earn points as you explore the Exhibition Hall for a chance to win a cash prize! A random winner will be chosen Nov. 30, so visit the trade show floor today!