Rising inflation in particular is causing higher prices, which in turn raise the amount paid per purchase.
In addition, paying by card is the first shopping option that citizens struggling to find cash turn to.
The Union of Chambers and Commodity Exchanges of Turkey (TOBB) and Visa periodically conduct a Card Spending Analysis. According to the third “Card Spending Analysis” carried out by TOBB and Visa, average monthly card spending in the first quarter of 2022 increased by 85 percent compared with the same period of the previous year.
According to the statement, TOBB and Visa completed the third edition of the “Card Spending Analysis”, which examines card spending in Turkey during the ongoing period that began with the coronavirus pandemic.
The analysis includes a comparison covering 2020, 2021, and the first 3 months of 2022.
According to the key findings of the analysis,
- Spending in Turkey increased starting from the summer months of 2021, with the acceleration of normalization and the spread of vaccination.
- Card spending was seen to increase by 55 percent in 2021 compared with 2020. Discretionary consumer spending, which had declined with the onset of the pandemic, also rose with the normalization process that began after May 2021 and caught up with essential spending. The monthly average of card spending in the first quarter of this year increased by 85 percent compared with the same period of last year.
- The Card Spending Analysis also included comparisons of Turkey with the US, Italy, and Sweden, which followed different approaches during the coronavirus pandemic. Compared with these 3 countries, Turkey was seen to enter a recovery trend in card spending above that of the other countries, especially after June 2021, and this continued to strengthen in the first quarter of 2022. It was also determined that all countries entered a recovery trend in the same period and that spending moved into real growth especially from the second half of 2021.
- When the first quarters of 2021 and 2022 are compared in terms of card spending in Turkey, e-commerce grew by 90 percent, debit card spending grew by 118 percent, and contactless payments tripled, indicating that the ongoing growth in this area continues.
- The growth rate of e-commerce rising from 72 percent to 90 percent compared with the same period of last year also showed that the trend is lasting. It was also noteworthy that spending with commercial credit cards increased by 94 percent in this period.
- When 2020 and 2021 are compared, card spending amounts grew by 62 percent for debit cards and by 47 percent for credit cards.
- During the coronavirus pandemic, debit cards began to be used more in contactless and online shopping.
Although the number and amount of card payments are rising, particularly due to the effect of digitalization and the cashless society strategy, the growth of mobile and alternative payments (such as QR code payments) is another topic that should be considered.
