The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Central Bank reports that the value of debit card transactions fell by 23 percent and overall debit transactions declined by 42 percent.

The bank, in its monthly financial and economic developments for the month of July, said: “As The Bahamas continues to navigate the COVID-19 pandemic, the curtailment in private consumption expenditure was reflected in retail payments indicators for the second quarter of 2020.

“Specifically compared to the first quarter of 2020, the volume of debit card transactions declined by 41.6% to 2.3 million, while the corresponding value fell by 23.4 percent to $370.3m. Further, when compared to the previous quarter, credit card usage reduced by 24.9 percent to 607,152 transactions, while the associated value decreased by 31.5 percent to $150.0m.”

“Relative to the second quarter of 2019, debit card transactions dropped in volume by 6.5 percent and in value by 8.3 percent; credit card usage fell by 10.8 percent, but with total payments for goods and services softening by just 0.2 percent.”

The bank also said: “Meanwhile, although the number of ATM/ABM terminals increased to 382 from 379 in the first quarter, both the volume and value of transactions contracted, by 28.6 percent to 1.7m and by 11.2 percent to $448.4m, respectively, in the second quarter; comparisons were also decreased by 22.6 percent and 4.2 percent respectively, against the 2019 estimates.”

The bank cautioned however, “Despite many businesses experiencing losses due to mandated closures, the total number of merchant accounts firmed by 2.5 percent to 15,247 accounts in the three-months to June. The outturn was underpinned by a 3.1 percent growth in New Providence to 10,754 accounts and a 4.1 percent rise in the Family Islands, to 2,680 accounts.”

“These improvements overshadowed the 3.3 percent reduction in Grand Bahama, to 1,813 accounts. With the concerns about COVID-19 as a likely factor, more businesses and customers utilized contactless solutions, including electronic banking. Over the quarter, there was a 5.0 percent boost in the number of electronic banking users, to 84,275, compared to a 52.2 percent hike in 2019. Expectations are that beyond the pandemic, consumers will embrace greater use of electronic banking and other digital payments solutions.”