Dutch debit card transactions decline sharply due to Covid-19

The largest year-on-year decline in debit card transactions is in recreational venues, such as cinemas, sport clubs, and restaurants (-83%). This is followed by clothing stores and shoe retailers, which show a decline of 72%. Since people are staying home, spending on transport is also taking a big hit (-46%).

In other places we see an increase in debit card transactions. In particular, toy retailers are benefiting from children having to stay home. Parents are likely resorting to toys to keep children busy, with debit card transactions at these retailers showing a 10% year-on-year increase. Other shops where we see a larger number of debit card transactions are supermarkets (+5%) and DIY shops (+2%).

Overall, we see a sharp decline in debit card transactions. Last Friday, they were down 24% from a year before. This is primarily driven by the closure of public places such as restaurants, cafés, cinemas and sport clubs.

Prior to the extra confinement measures, we saw an increase of 10%. This was mostly driven by extra consumer spending in supermarkets.

We saw a significant increase in debit card transactions in supermarkets in the past two weeks, peaking at 30% YoY.

Over the last week this has been decreasing. Friday 20th of March showed 5% more debit card transactions than a year earlier.

Covid-19 measures have particularly hit businesses in the leisure industry. We observed an 81% decrease YoY for pin transactions in restaurants and cafés last Friday. Currently, it is just the takeaway and delivery caterers that are keeping debit card transactions above zero.

We observed even larger declines in recreational venues such as cinemas, sport clubs and amusement parks. In particular, last Friday we saw a drop of 95% compared to last year.

Since the government rolled out the new Covid-19 measures, the number of transactions has decreased drastically at fashion retailers. Last Friday, these transactions were 72% below the number observed the same day in the previous year.

Businesses in the personal care and wellness sectors such as hairdressers, beauty salons, and pedicure studios saw a 60% decline in the number of pin transactions in comparison to last year. Since then, the government has forbidden professions that require physical contact to be open until 6 April. As such, we expect to see a further decline in debit card transactions for these types of businesses this week.

DIY shops, furniture stores, and gardening centres show a strong increase in debit card transactions, peaking at almost 40% higher than a year ago. The spring-like weather conditions and the limited possibilities for leisure activities have seemingly fuelled an increase in gardening and house chores.

In the last couple of days, we have observed a smaller increase in debit card transactions in these types of shops. On Friday, 20 March we saw just 2% more transactions than in the year before. This does fit with the declining short-term trend. However, this number may also be biased downwards due to extra demand last year as the weather was even better back then.