Australians are spending more as the economy begins to recover from COVID-19.
Australians are spending more as the economy begins to recover from COVID-19.

Card payments surge as economy recovers

Latest monthly retail payment figures released by the Reserve Bank of Australia show a transaction bounce back across the economy.

According to the RBA, 828 million purchases were made by Australian-issued cards during the month of May, a 16.5 per cent month-on-month increase.

The total monetary value of the card purchases sits at $52.3 billion.

In the previous month, total card spending fell by 22 per cent, a direct result of COVID-19 restrictions impacting spending abilities.

Outstanding credit card balances fell by 10.3 per cent compared with the previous month, while year-on-year outstanding debt decreased by 26.1 per cent.

RateCity research director Sally Tindall said the monthly fall equated to a $1.64 billion debt wipe off.

"COVID-19 has motivated us to take our personal finances more seriously," Ms Tindall said.

"In April and May, Australians have wiped almost $3.2 billion off the total debt accruing interest on credit cards."

ATM withdrawals for the month equated to $7.6 billion, a 17.1 per cent rise compared with April. Cash withdrawal transactions from ATMs continue to show a longer-term decline, experiencing a year-on-year fall of 30 per cent, ending at May 31.

Cards on issue also fell by 0.7 per over the month, while the number of cheque payments rose by 1.6 per cent compared with April.

Originally published as Card payments surge as economy recovers



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