CleverCards Releases Inaugural Spending Report

CleverCards, the digital payments platform that enables Businesses and Public Sector organisations to configure digital Mastercard’s themselves and send them to anyone, anywhere, anytime to download instantly, released its inaugural CleverCard spending report, detailing how users of CleverCards are using their funds.

The report analyses the spending data of 75,000 CleverCards digital Mastercard’s users from January 1st 2023 until 13th November 2023 who had received €1,000 Tax Free on a prepaid CleverCard from their employer. The sample set included employees across small, medium and enterprise business customers of CleverCards across 40 different business sectors throughout the country.

There were some noticeable shifts in spending trends this year compared to previous years;

With the pandemic’s onset in 2020, sudden lockdowns meant employees could not spend on experiences and therefore spent more on goods while uncertainty was the theme of Christmas 2020 and even 2021.

After an overspending on goods during Covid, employees were eager to spend on experiences and did so in 2022 although inflation and increasing prices were still a key factor as evidenced by employees using their €1,000 CleverCards to pay motor tax, fuel, electricity and similar non-discretionary costs in early 2023.

The resilient economy throughout 2023 has seen 29% of all spend in the sample set spent on food and dining, 14% on clothing and 6% on health and wellbeing.

The company anonymously analysed employees who received €1,000 tax-free bonuses from their employers in 2023. Of the 75,000 cards that were selected for analysis, they drew the below results:

—  Food & Dining: 29% of card spend

—  Retail: 16% of card spend

—  Clothing: 14% of card spend

—  Health & Wellbeing: 6% of card spend

—  General Supplies: 5% of card spend

—  Fuel: 4% of card spend

—  Accommodation: 4% of card spend

—  Travel & Transport: 3% of card spend

—  Airline: 3% of card spend

—  Electronics: 3% of card spend

—  Professional Services: 3% of card spend

—  Miscellaneous: 3% of card spend

—  Technology & Software: 3% of card spend

—  Financial Services: 2% of card spend

—  Other: 2% of card spend

CleverCards has experienced dramatic growth over the last 12 months, with over 5,000 businesses in Ireland alone already using the platform. The business employs over 60 people and has significant plans for continued growth into 2024. The company recently made two marquee appointments; Paul Carroll, joined as Chief Operations Officer, and Mark McCoy, former Head of Revolut Business Enterprise Account Management joined as VP of Sales.

Speaking on the results, Kealan Lennon, CEO and Founder of CleverCards stated, “We are privileged to have a unique insight into the spending patterns of employees in Ireland. This report demonstrates the changing nature of employee spend – our consensus last year was that employees were spending a higher proportion of their tax-free bonus on essentials; motor tax, electricity, food. This year, those proportions have dropped, with people spending a higher percentage on food and dining and retail. One thing is certain; employers are realising the benefit of treating their staff well and rewarding them with non-cash bonuses that can be spent everywhere a Mastercard is accepted.”

Lennon added; “As we move into the 2023 year-end Christmas period the combination of increased interest rates, a surge in crude prices and a weak euro relative to the dollar driving up the price of motor fuels and the cost of home-heating oil, we expect employees will again use their CleverCards tax free bonuses to pay for fuel, electricity and similar necessities.  We do however, see opportunities for continued SMB business growth and indeed new business creation, particularly for the ‘experience’ sector such as travel and recreation, where demand remains robust.”

“On the employer front we expect businesses to delay decision making on bonus pay-outs until the last minute this year, which will drive a further increase in digital cards and a sharp reduction in plastic card distribution due to the risk of not arriving on time, while also supporting a more inclusive and sustainable digital economy.”

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