The data suggest consumers are feeling pinched by inflation and have begun to rein in spending. 

Across credit and debit, Bank of America’s volume grew 5.2% in the fourth quarter of 2022 – a notable drop from 22% during the same period in 2021, according to RBC.

JPMorgan Chase experienced 9.3% growth, compared to 25.7% one year earlier, while Wells Fargo saw 3% growth, down from 18.4% in Q4 2021. In credit, Citi experienced 8.8% growth in the fourth quarter, compared to 23.6% during the same period in 2021. 

In light of that, RBC estimates Visa’s fiscal year first quarter 2023 volume growth, based on both credit and debit, to be 11.4%, and Mastercard’s Q4 total to be 9.8%. Visa debit volume growth is expected to clock in at 9%, while credit is projected to see 14% growth. Mastercard is estimated to experience 4.9% growth in debit, and 13.8% growth in credit. Visa and Mastercard will report their quarterly earnings on Jan. 26. 

The emergence of other payment methods – such as buy now, pay later and peer-to-peer payment options – has also taken a bite out of bank card volumes.

About 80% of merchants now offer P2P payment methods, and 55% of consumers have used that payment method to purchase goods or services, a recent American Express survey revealed.

Almost half of consumers used BNPL when making an online purchase last year, and 31% of merchants now offer the payment method, the Amex poll showed. About 1,011 consumers and 418 business leaders were polled for the survey in September 2022.

By Caitlin Mullen on Jan 17, 2023
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