Credit Card Expenses Soar in July Reach New Record: NIS 41.17 billion- 6.2% increase

The Automated Bank Services Company has released its data on credit card expenses for the month of July, revealing a remarkable surge of approximately 6.2% compared to the same period last year. With credit card spending reaching an impressive NIS 41.17 billion, July has claimed its spot as the second-highest month of the year for credit card expenditure.

One of the most noteworthy findings is the unprecedented growth in online transactions, which have hit a new record of NIS 24.1 billion in July, marking an astounding increase of 8.18% compared to the corresponding month in 2022. The average daily spending on online purchases amounted to NIS 777.9 million, signifying a noteworthy rise of 3.18% when compared to June's average daily online expenditure.

Physical transactions conducted within businesses also experienced a positive trend, growing by 3.47% compared to the previous year, reaching a total of about NIS 17 billion.

On the contrary, cash withdrawals from bank ATMs took a dip in July, witnessing a decrease of over 5.5% compared to the same month in 2022, amounting to NIS 5.619 billion.

The data indicates a significant shift in consumer behavior, with a preference for online purchases, likely influenced by the evolving landscape of digital commerce and the ongoing pandemic. The convenience and security of online transactions have evidently appealed to consumers, contributing to the rise in credit card expenses and the record-breaking online spending.

Economists are closely monitoring these trends, speculating on the potential impact on the broader economy and the financial industry. As the country continues to adapt to changing consumer habits, businesses and financial institutions are expected to further invest in digital infrastructure and innovative technologies to cater to the increasing demand for online services.

Overall, the data provided by the Automated Bank Services Company paints a picture of a dynamic and evolving financial landscape, with credit card spending reaching new heights and online transactions emerging as a driving force behind the record-breaking figures for the month of July.