Viewpoints

Visa’s Blog – Visa Viewpoints

PERSPECTIVES ON DIGITAL CURRENCY

Dec 3, 2013

eCommerce

Merchants Rack Up $7.8 Billion in Online Sales on US-issued Visa Cards in Just Five Days

‘Tis the season of deep discounts, shopping-friendly apps, mobile devices and free shipping to drive record online sales. From Thanksgiving Day through Cyber Monday, online sales – across smart phones, tablets and PCs – from U.S. Visa accountholders increased to $7.8 billion, up 30% over last year. Cyber Monday alone accounted for $2.6 billion in online spending, an increase of 28% over 2012.

Already, we see a number of factors contributing to these Visa numbers:

  • Shoppers have six fewer days this year between Thanksgiving and Christmas, making it the shortest holiday shopping season in more than a decade.
  • Bad weather in the East kept shoppers homebound, shopping online and away from the mall crush.

For more details on the numbers and to see how this year compares to previous years, see the infographic below.

 

By Wayne Best, Chief Economist

 

[Note to media/analysts: For any questions related to holiday shopping data, please contact us at mediacheck-in@visa.com]

 

 

 

 

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Posted by: Wayne Best, Chief Economist, Visa on December 3, 2013 at 10:39 am

Nov 12, 2013

Holiday Shoppers Prepare to Hit the Web

 

 

 

As consumers gear up for the holidays, it’s clear we’re in for another growth year in eCommerce.  According to new data from the Visa Spending Intentions survey, 87 percent of people plan to do at least some of their holiday shopping online this year, with 40 percent saying they will do half or more gift-buying online.  That’s good news for retailers, knowing that 72 percent of people also plan to spend more or the same amount of money on gifts this year, compared to last year.

In the first 10 months of 2013, eCommerce sales are up 17 percent from the same period last year, and Visa domestic eCommerce transactions exceeded one billion dollars on 211 days, an increase of 19 percent from 2012.

Other key findings from the Visa Spending Intentions survey include:

Electronic Payments are the Norm

  • 25 percent of respondents plan to use their mobile phone or tablet for holiday shopping this year, up from 22 percent last year
  • Credit and debit cards will be the primary form of payments through the holidays, with 56 percent of people planning to use their credit card and 30 percent to use a debit card

The Holidays are Big Business, for Big and Small Businesses

  • Almost 50 percent expect to spend between $301 and $800, while 14 percent plan to spend more than $800
  • More than 85 percent of consumers are as, or more, inclined to shop at a small business this year, compared to last year

Beat the Crowds, with a Tap of the Finger

  • Online holiday shopping has become the preferred way to shop for a number of reasons, including:
    • Fits my schedule better/Can shop anytime (67 percent)
    • Better prices online (61 percent)
    • Dislike battling crowds (54 percent)

Each year, millions of shoppers rely on Visa for holiday-related purchases, providing a near real-time view into consumer behavior. If you wish to receive regular updates throughout the holiday season, send an email to globalmedia@visa.com or follow ongoing updates at http://blog-visa.fhstage2.com.

* 2013 VisaNet Data

Survey Methodology:

This survey was conducted for Visa by Prosper Insights and Analytics via an online sample of over 4,600 U.S. consumers aged 18 and over.

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Posted by: Wayne Best, Chief Economist, Visa on November 12, 2013 at 7:00 am

Oct 10, 2013

Consumers Rack up $1 Billion in Online Spend Per Day, on 188 Days in 2013

New data from Visa shows consumers are spending more online than ever before. eCommerce sales on the Visa network* have surpassed $1 billion a day for 188 days in the first nine months of the year, demonstrating that billion-dollar eCommerce days have become the norm rather than the exception.

The data coincides with a recent Visa survey – The Way We Pay: e- and mCommerce Trends – showing 27% of smartphone users and 24% of tablet owners have used their mobile device to make a purchase in the past 12 months. That growth in mobile shopping is continuing to help drive online sales, pushing Visa to process 16% more online transactions in the first nine months of 2013, compared to the same period last year.

The continued, dramatic growth in online sales means routing millions of transactions per hour through the world’s largest retail payments processing network, VisaNet. The network already handles 48% of global eCommerce transactions** and is prepared to handle another busy holiday season in the months ahead.

Other key findings from The Way We Pay are available in full here:

 

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Posted by: Sam Shrauger, Digital for Developed Markets, Visa Inc. on October 10, 2013 at 8:19 am

Category: eCommerce

Sep 19, 2013

Hotwire and V.me Keep Summer Travel Going

With kids back in school and Labor Day behind us, September is a great time to snatch up last minute travel deals, and Hotwire and V.me by Visa are now making it even easier to buy them. Using V.me, busy travelers can find and book their favorite hotels at deep discounts using Hotwire and checkout with just a few clicks of the mouse.

Travel continues to be one of the most popular categories for eCommerce – 7 of 10 travelers booked their vacation entirely online last year.  And while eCommerce marks its eleventh consecutive quarter of double-digit year-over-year growth, it’s worth noting that according to comScore, 67% of online shopping carts are still abandoned before a purchase is ever completed.

Merchants recognize that simplifying check-out means reducing online cart abandonment, particularly as mCommerce transaction begin to gain in popularity.  Visa is helping #SavetheCart by offering V.me to streamline checkout and remove the hassle of entering bill to, ship to and account information with each purchase, no matter your device.

Learn more about how people are booking their travel today in the infographic below.

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Posted by: Kyrssa Guntrum, Visa Corporate Relations on September 19, 2013 at 9:50 am

Dec 20, 2012

Bill Gajda on the Future of Mobile Payments

The widespread adoption of Internet-enabled devices – smart phones, tablets, laptops and PCs – enable consumers to shop online, anywhere, anytime – especially this holiday season. According to IBM, 24% of consumers used a mobile device to visit a retailer’s site over Thanksgiving & Black Friday, up from 14.3% in 2011.

As we shared earlier this week , while Cyber Monday remained the busiest online shopping day of the year – representing an astounding $2.1 billion in online sales from U.S. Visa account holders – Visa’s network has seen seven days that topped more than $1 billion in online sales in the U.S. this holiday season.

In the following video, Bill Gajda, Head of Global Mobile Products for Visa, shares his view on how innovations in mobile and payment technology, including near-field communications, are changing the landscape of commerce this holiday season and into the future. 

 

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Posted by: Jennifer Schulz, Global Head of eCommerce on December 20, 2012 at 1:00 pm

Dec 18, 2012

Perspectives on eCommerce

Earlier today, we shared a look into the growth of U.S. consumer online shopping behavior during the holiday peak season (Nov. 1st – Dec. 16th). It’s no surprise that with the advent of tablets, mobile devices, the growing number of online merchants, and the widening adoption of new payment technologies, eCommerce remains Visa’s fastest growing commerce channel – and we don’t see that changing for a long time to come.

As eCommerce grows, consumers are looking for services that are designed to make online payments simple and secure, without all the hassles of entering bill-to, ship-to, and account information.  Visa understands that, and is helping to usher in this next generation of commerce with a digital wallet service called V.me by Visa.

In the following video, Jim McCarthy, global head of product for Visa, provides his thoughts on how eCommerce has evolved since its inception and the tools Visa is developing to improve the online shopping experience, for everyone.

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Posted by: Jennifer Schulz, Global Head of eCommerce on December 18, 2012 at 11:55 am

Dec 18, 2012

2012: The Year of the Cyber Holiday Season

Today, Visa reported that merchants made more than $50 billion in online sales from U.S. Visa accountholders from November 1 to December 16, 2012, up 16% from the same period in 2011. While Cyber Monday remained the busiest online sales day of the year – representing $2.1 billion in online sales from U.S. Visa accountholders – Visa’s network has seen seven days with more than $1 billion in online sales during the 2012 holiday season, making this what Visa is declaring the first official Cyber Holiday Season.

In fact, merchants have been increasingly benefiting from eCommerce throughout the holiday season for several years, spurred in part by offering free shipping and other deals well before Thanksgiving when consumers shop online. According to IHS Global Insight, overall U.S. holiday sales growth is expected to be 3.9%, with online sales growth at 17%, indicating that merchants’ online sales continue to outpace in-store purchases and represent a growing portion of all holiday sales.

In addition to facilitating eCommerce, our partnerships allow merchants of all sizes to better serve their customers and grow their businesses during the busiest time of the year. We’ve been doing it since the advent of online shopping and, today, more merchants accept Visa for online purchases than any other payment method (Source: comScore, December 2012).

Accepting Visa online enables even the smallest merchants to reach consumers regardless of their location or time zone, and can increase merchants’ sales, efficiency and security.  Additional benefits of acceptance include guaranteed payment, simplified accounting and the ability to take advantage of Visa’s innovative products and services – such as V.me and Visa Offers – which enable merchants to deliver a streamlined online checkout process and use SMS text messages to send tailored promotions to Visa account holders who have opted in, respectively.

Watch the video below to see Visa Chief Economist Wayne Best discuss eCommerce trends for the 2012 holiday season:

 

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Posted by: Jennifer Schulz, Global Head of eCommerce on December 18, 2012 at 6:35 am

Dec 11, 2012

LivingSocial and Newegg.com are the Latest Merchants Live with V.me by Visa

Whether you’re celebrating the holidays with family, friends, or both, early eCommerce data is showing just how generous people are through the holidays. Consumers are spending more time—and money—online as more people log-on to do their holiday shopping to avoid crowds, save money and simplify the gift buying experience. This year, Visa is making it even easier by adding two more leading online retailers to our growing roster of V.me by Visa merchants and further eliminating the hassles of online shopping. 

Today, visitors to LivingSocial.com and Newegg.com can sign up for V.me, checkout with a few simple clicks, and say goodbye to having to enter their bill-to, ship-to and account information each time they make a purchase online.  For both adventure lovers looking to book New Year’s Eve plans or discover a weekend excursion, or tech-enthusiasts looking for holiday shopping deals or the latest gadget, LivingSocial and Newegg.com are sure to have the perfect gift.

With just two weeks to finish holiday shopping before Christmas, it’s important to be able to buy gifts quickly. V.me allows people to do just that, enabling checkout with just a few clicks of the mouse at any of the leading 25 eCommerce merchants using V.me.  Today’s news builds on the recent launch of V.me, where more than 50 financial institutions participated in the announcement, bringing the addressable base of cardholders to as many as 55 million.

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Posted by: Jennifer Schulz, Global Head of eCommerce on December 11, 2012 at 11:56 am

Nov 27, 2012

Visa Cardholders Spend $5 Billion Online Over Thanksgiving Weekend

Given the tremendous attention paid to shopping trends over the holiday weekend, we want to make sure everyone sees our press release from this morning regarding U.S. eCommerce spending results for November 23-26. For a bit of incremental context, take a look at this graphical view of eCommerce shopping trends over the long-weekend.

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Posted by: Visa Corporate Relations Team on November 27, 2012 at 11:36 am

Nov 21, 2012

‘Tis the Season for Ringing Checkout Registers

It’s the time of year when retailers hope that you’ve made Santa’s “Nice” list, so there are lots of presents under the tree and all stockings are stuffed! So far, early indications suggest that the season will be jolly, keeping Santa and his reindeers’ travel schedules fully booked.

The National Retail Federation predicts holiday shopping will increase 4.1 percent to $586 billion this year. Additionally, this week Adobe predicted online sales on Cyber Monday would top $2 billion this year, representing an 18 percent increase over 2011. Also of note: a prediction that mobile commerce would represent more than one-fifth (21 percent) of all online sales this holiday season.

While Black Friday and Cyber Monday are typically thought of as two of the busiest holiday shopping days of the year, a closer look at our United States-driven eCommerce data may suggest otherwise. We tasked some of our holiday number-crunching elves at Visa to look at debit and credit card purchases over the past 10 holiday seasons and found some interesting trends:

  • Weekend warriors: With a few notable exceptions (Black Friday, Cyber Monday), shopping volumes tend to climb significantly on Saturday and Sunday and drop off during the weekdays. [No matter which day you shop, if you are doing it online, V.me by Visa can help simplify the process.]
  • eCommerce excellence: According to Forrester, shoppers are expected to spend $226 million online this year alone.
  • Shopping strongholds: The Wednesday before Thanksgiving, Black Friday and Cyber Monday are BUSY shopping days—but not the busiest of the year.
  • Procrastination purchasing: Waiting until the last minute to buy gifts means a rush before Christmas. Over the last 10 years, December 22, 23 and 24th have been the busiest shopping days of the holiday season.

Whether past trends hold true this holiday season, or other days emerge as shopping surprises remains to be seen. One thing is for certain: checkout registers – whether online, mobile or in stores – will be busy ringing with the holiday sounds of spending.

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Posted by: Lucas Mast, Visa Corporate Relations on November 21, 2012 at 1:06 pm