Consumer Optimism Remains Strong Despite Economic Headwinds, Per 2022 Holiday Spending Report From ACI Worldwide
January 30 2023 - 1:00AM
Business Wire
Annual ACI Holiday Spending Report reveals
surge in use of mobile devices, digital wallets and buy now, pay
later (BNPL) payment methods during 2022 holiday season, as
shoppers sought out cheaper, more convenient alternatives
- eCommerce transactions increased 21%, as fraud attempts
decreased by 0.5% during holiday season Q4 2022 versus 2021
- BNPL transaction values increased by 87% during Black Friday
versus 2021, as it became the go-to payment method for shoppers
concerned with inflation
- Mobile devices saw a surge in volume of transactions, with 36%
of Black Friday eCommerce traffic via mobile devices
- More consumers opted for delivery channels such as BOPIS or
Click and Collect, helping shoppers save on delivery costs, as
volume of transactions experienced a 25% increase Q4 2022 versus
2021
Despite a challenging economic environment, the 2022 holiday
shopping season exceeded projections, according to eCommerce
intelligence from ACI Worldwide (NASDAQ: ACIW), a leading global
provider of real-time digital payments solutions, which analyzes
millions of eCommerce transactions on an annual basis to assess
year-over-year growth. From October through December 2022,
eCommerce transactions saw a 21% increase, beating estimates by
6%.
Consumers spent more on gaming and travel, as both sectors saw a
significant uptick in transaction volumes during Cyber Weekend
2022. The gaming sector experienced a 153% increase in transaction
value, and the travel sector experienced a 57% increase. Meanwhile,
the retail sector experienced a 4% increase in volume over Cyber
Weekend, driven by general retail, which saw a 14% increase, and
sports and athletic sales, which experienced a 13% increase in
transaction volume.
“Consumers upped their spending this holiday season despite
increasing economic pressures,” explained Basant Singh, head of
merchant segment, ACI Worldwide. “While inflation accounted for
much of the year-over-year rise in holiday spending, our data shows
a steady uptick in transactions, with many consumers buying goods
and services via mobile devices, and in many cases using digital
wallets as a preferred payment method. We expect to see these
trends continue in 2023.”
Mobile shopping surged on Black Friday
Consumers used their smartphones to make key purchases as deals
dropped over Cyber Weekend. In total, mobile devices drove a 17%
increase in transaction volume throughout the course of the
weekend. 36% of all transactions were processed via mobile devices
during Black Friday. Cyber Monday played an equally significant
role in driving the uptick in mobile usage, with transaction
volumes over smartphone devices soaring by 43% in comparison to
last year.
eCommerce shopping is becoming more secure
Fraud attempts decreased by 0.5% during the Q4 holiday shopping
season. Mobile fraud attempts saw a decline of 0.6%, and eWallets
saw fraud attempts declining by 0.8%. Merchants are increasingly
investing in better fraud management and prevention capabilities,
as many now look at fraud prevention as a revenue generator. As a
result of added security measures by eWallet providers (i.e.,
biometric authentication, encryption, etc.), this category saw the
biggest decline in fraud attempts.
Venturing in-store to save costs
Data from ACI finds that shoppers actively sought out Buy
Online, Pick-Up In-Store (BOPIS) options as a cheaper alternative
to shipping and waiting for products to deliver. Transaction values
for BOPIS increased by 18%, with the average ticket value (ATV)
increasing by 26%, or $26.
Buy now, pay later options continue to lure holiday
shoppers
The go-to payment method for Black Friday — BNPL — rose by 87%,
with the ATV increasing by 42%, or $57.
For high-value products, credit and debit cards were the top
choice. Transactions for credit and debit cards experienced an 8%
increase, with the ATV climbing by 43%, or $49. eWallets saw a
comparable increase in transaction volumes, rising by 32%.
“Use of digital wallets during the last holiday season signals a
broader trend that we expect to play out in the year ahead,” added
Singh. “Consumers, especially younger shoppers, are embracing
digital wallets as a mainstream payment method. More than half of
consumers (52.7%) used a digital wallet in 2021, according to our
data. This represents a 33% increase over the last five years.”
To meet this demand, ACI recently launched its ACI Wallet Hub,
an integrated network that gives merchants in 70+ countries the
ability to connect to a single hub offering 200+ global and
regional digital wallets. The wallet hub is part of ACI’s payments
orchestration platform for global eCommerce.
To learn more about ACI Worldwide, please visit:
https://www.aciworldwide.com/.
About ACI Worldwide ACI Worldwide is a global leader in
mission-critical, real-time payments software. Our proven, secure
and scalable software solutions enable leading corporations,
fintech companies and financial disruptors to process and manage
digital payments, power omni-commerce payments, present and process
bill payments, and manage fraud and risk. We combine our global
footprint with a local presence to drive the real-time digital
transformation of payments and commerce.
© Copyright ACI Worldwide, Inc. 2023 ACI, ACI Worldwide, ACI
Payments, Inc., ACI Pay, Speedpay and all ACI product/solution
names are trademarks or registered trademarks of ACI Worldwide,
Inc., or one of its subsidiaries, in the United States, other
countries or both. Other parties' trademarks referenced are the
property of their respective owners.
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Media: Nick Karoglou nick.karoglou@aciworldwide.com
Katrin Boettger katrin.boettger@aciworldwide.com
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