The volume of credit card purchases in May was NIS 33.3 billion, a jump of 17.3%

Posted on Jun 11, 2021 by Ifi Reporter

The recovery from the corona plague and the subdued demand that has accumulated during the crisis continue to set the tone when it comes to the use of credit cards and cash withdrawals. Even the "Wall Guard" combat operation, which disrupted life in key parts of the country in May, did not halt its strong performance last month.
Data from the Automated Banking Services Company, which manages the payment infrastructure in Israel, show that the volume of credit card purchases in May was NIS 33.3 billion, a jump of 17.3% compared to May last year. It will be recalled that in May last year the economy came out of the first closure, so that there was also subdued demand, but restrictions were still imposed, as in the fields of culture and tourism. But even if one compares the data to May 2019, pre-Corona plague and restrictions, one sees that there is a sharp growth of almost 19% in the volume of credit card purchases.
Despite a return to routine, and full opening of trading, the trend of online purchases continues to pick up. The volume of online purchases jumped by more than 20% compared to May last year. In addition, online purchases occupy an increasing volume of total purchases: if in May 2019 they accounted for 51% of purchases, last year their share had already climbed to almost 55%, and in May 2021 it stands at 57% of total purchases.
This is because the corona crisis has forced populations that did not purchase online to make such purchases - such as older populations - and after they experienced this, some continued to adopt it even when the restrictions on the economy were lifted. In addition, the Corona crisis also forced businesses to move some of their operations online, and this trend was not stopped after the restrictions were lifted, in light of the benefits of this activity.
May's strong data is surprising in light of the fact that during the past month, Operation Wall Guard took place, which paralyzed some of the activity in significant areas in Israel. In the credit card industry, we noted that the sale had an effect on the volume of consumption, and during the days of the sale, there was a certain decrease in the volume of credit card use. At the same time, the rest of May the data were so strong that in a monthly summary it is a positive month of sharp growth in the volume of purchases.
Another figure that indicates active activity in the economy is the volume of cash withdrawals. According to Shaba data, the volume of withdrawals from ATMs last May was NIS 5 billion, a jump of 19% compared to May last year, and a slight increase of 2% compared to May 2019.


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