Welcome to Innovating Payments' Top 3 News Headlines for the week of Dec. 2, 2024. In this issue, Black Friday participation is on the rise, with 62% of U.S. consumers making at least one purchase on Nov. 29, up from 53% in 2023. Additionally, the CHIP® network, managed by The Clearing House, achieved a new record for transaction volume on Black Friday, clearing and settling 1,083,550 payments valued at $2.63 trillion. Lastly, Adobe Analytics reports that online shoppers spent a record $10.8 billion on Black Friday.
Read on to learn more.
1. Sales, Not Sentiment, Drives Black Friday Turnout (PYMNTS.com)
Black Friday participation is on the rise. PYMNTS Intelligence data finds that 62% of U.S. consumers made at least one purchase on November 29, representing a jump from 53% in 2023. That increased engagement looks and feels vastly different from the event's traditional Friday-only doorbuster origins, however. Early shopping played a significant role this year, with consumers spending 42% of their total holiday budgets before the day. In fact, 39% of Black Friday shopping happened before November 29, as consumers sought to secure deals and avoid crowded stores. (Read more.)
2. CHIPS® Celebrates Black Friday by Smashing Payments Record (Cision)
The CHIPS® network, the largest private-sector high-value clearing and settlement system in the world which is operated by The Clearing House, set a new record for transaction volume on Black Friday by clearing and settling 1,083,550 payments valued at $2.63 trillion...The CHIPS network is the premier USD clearing and settlement system for international payment activity, with 95% of CHIPS payments being the U.S. dollar leg of a funds transfer that begins or ends in another country. Many transactions on Friday, November 29, originated from foreign banks that do not observe the U.S. Thanksgiving holiday. These transactions could not be sent through wire systems in the U.S. (Read more.)
3. Shoppers Spent a record $10.8 billion online on Black Friday. Up next? Cyber Monday (USA Today)
Many Black Friday shoppers avoided the long lines at stores and chose to do their holiday shopping in a more convenient way: online and with their smartphone. They clicked their way to a record for Black Friday spending online, racking up $10.8 billion in purchases, an increase of more than 10% over a year ago, according to Adobe Analytics. "Crossing the $10 billion mark is a big e-commerce milestone for Black Friday, for a day that in the past was more anchored towards in-store shopping," Vivek Pandya, lead analyst at Adobe Digital Insights, said in a statement. (Read more.)
What trends did your financial institution notice in Black Friday spending? Did you see increased real-time payments?
Check back soon for our next issue, highlighting the industry's most pressing and important developments. Until then, visit us online at Innovating Payments.
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AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.
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