Bank of Ireland has revealed a significant shift in consumer payment habits, with ATM withdrawals now representing only 12% of total card transactions in January, a dramatic decrease from nearly one-third of transactions before the pandemic. The latest figures highlight the continuing trend toward digital payments and away from cash usage.
Despite the decline in cash withdrawals, overall household spending showed robust growth, increasing by 6.1% compared to January last year. The bank’s consumer spending data revealed several interesting trends, including a notable 23% surge in spending on sports clubs, suggesting an increased interest in fitness and recreational activities.
According to The Journal, travel planning appears to be on the rise, with hotel and resort bookings showing a 4.9% year-on-year increase. However, the retail sector showed mixed results, with clothing sales dropping by 5% while spending on electrical goods rose by 6.4%.
The bank’s data also provided insights into changing social patterns, particularly around Valentine’s Day. While florists typically see their daily sales multiply by five or six times during the romantic holiday, online dating services have experienced a steady decline, with spending down 17% compared to last year and 43% lower than the peak seen in 2021.
Looking ahead, Bank of Ireland has forecast a 3% real growth in consumer spending for 2025, suggesting continued economic optimism despite the significant changes in spending patterns and payment preferences.