N26 Data Reveals Post Lockdown Consumer Spending Up 32%, While Cash Payments Continue To Decline

Mobile Bank, N26 has released its own data which provides a snapshot of how Irish consumers spent money both on and offline before, during and after the Covid-19 lockdown. N26 analysed spending data for its Irish customer base across a range of consumer categories to see how consumers changed their interaction with cash, card and online payments methods over the seven-month period of January to July. The data shows that Irish consumer confidence is relatively strong post lockdown with overall spending (online and offline) up 32% on lockdown spend.

The acceleration toward a cashless future

The digital bank’s figures also reveal how the pandemic has accelerated the move towards a more cashless society. Cash payments have dropped considerably – down 30% on pre-lockdown figures. There was also, unsurprisingly, a huge drop in the number of ATM transactions (-49%) during lockdown, and levels are still considerably below pre-lockdown levels, in total -42% post lockdown.

N26 also reports that its number of card transactions are back to pre-lockdown levels, with an increase of 2.7%, bringing the share of payments made by card from 54% to 59%. Moreover, the average amount paid per card transaction has increased by 35% (7 EUR) compared to pre-lockdown, whilst overall, the average transaction value increased by 19% (6 EUR)

Baby Boomers more confident in eCommerce  

Despite stores being reopened, online spending has increased 7% in the post lockdown vs lockdown period. In terms of the generational split, 35-44-year-olds are shopping more online now versus pre-lockdown (+5%). Moreover, there was a 17% increase in the number of eCommerce transactions among baby boomers (55-65+) during the lockdown, compared to before with many becoming more accustomed to this commerce channel due to lockdown restrictions.

With regards to the number of transactions by gender, it is interesting to see that – pre, during or post lockdown – Irish women spent less than men:
– Pre-lockdown: women spent 79% less than men
– During lockdown: women spent 82% less than men
– Post lockdown: women spent 79% less than men

Women have also reduced their number of transactions more than men (pre vs during; as well as during vs post lockdown).

“Post lockdown, there are some encouraging signs that consumers are building confidence in N26 for everyday spending and money management,” says Sarunas Legeckas, Country Manager for Ireland, N26.

He continued: “Irish consumers seem to feel comfortable with the ease of use and in-app experience which is reflected in how they are spending their money. In terms of cashless payments, this year has seen a global acceleration towards cashless payments. It’s interesting to see that with stores and restaurants reopened, while we’ve started spending more money again, Irish consumers are vastly favouring card over cash. Another exciting trend we have noticed is the persistent strength in eCommerce, which saw the least damage during lockdown and that people are still shopping so much online despite the reopening of physical stores.”

Food delivery purchases still as high as during lockdown

N26 has also released a ranking of the top merchants favoured by Irish consumers over the same period. The analysis shows that pre-lockdown, Lidl ranked as Ireland’s “Top Merchant”, followed by Amazon and Supervalu. This changed during and post lockdown, where Lidl became the second most popular merchant while Amazon took the lead. Supervalu consistently ranks #3 pre/during and post lockdown.