First Data Reports Spending Slowdown
First Data, a leading payments processor, has reported the pace of consumer payments slowed significantly in April over the pace during the first quarter of the year.
The firm's SpendTrend report found overall year-over-year dollar volume growth was 5.7% in April, down from March’s 8.7% growth. Transaction growth slowed to 5.8% in April, down from 9.3% in March.
Despite the slowdown in overall year-over-year dollar volume and transaction growth, discretionary spending was healthy in April, the firm reported.
Rather than seeing a sign of an economic slowdown, the firm attributed the downturn in April to previous good weather.
“April’s card spending was impacted by an earlier Easter, plus the unseasonably warm weather in February and March, which pulled forward seasonal demand,” said Silvio Tavares, senior vice president and division manager of First Data Global Information and Analytics Solutions, which publishes SpendTrend.
PIN debit remained the leading payment type among consumers, although its upward growth trend moderated in April, the company said. PIN debit dollar volume growth was up 7.4% in April, while PIN debit transaction growth increased 7.5%.