### Purchasing in a Pandemic

**The Strawhecker Group (TSG)** and **Visa Consulting & Analytics (VCA)** teamed up in July 2020 to survey a representative sample of U.S. consumers and analyzed Visa’s proprietary spend data with the goal of understanding how the COVID-19 pandemic has impacted consumer lifestyles, payment methods, and how behaviors may change after the pandemic.

#### Key Takeaways

- While travel remains hard-hit, consumers are divided on when and if things will return to **normal**.
- COVID-19 has accelerated growth in certain **eCommerce** vertical markets.
- Spending has bounced back but has not yet reached pre-pandemic levels.

#### CONSUMER SPEND

U.S. Total Payments Volume: Visa

After a sharp decline in April, the U.S. saw a V-shaped spending recovery and reached positive territory again in June, with further a climb into July. Volumes declined 18% in April before returning to positive territory in June.

| Month | Payments Volume |
|---|---|
| Jan | 0% |
| Feb | 0% |
| Mar | 0% |
| Apr | -18% |
| May | + | 
| Jun | + | 
| Jul | + | 
| Aug | + |

*Source: Visa Form 8-K Filed September 1, 2020*

48% of consumers surveyed decreased overall spending since the pandemic started, but 28% of respondents have increased their spending.

*Source: The Strawhecker Group and Visa Consulting & Analytics Consumer Survey, July 2020*

#### VERTICAL IMPACT

The image below shows how respondents of the survey have changed their spending habits across various industries since the pandemic began.

- Most Positively Impacted:
  - Pharmacy
  - Healthcare
  - Online Purchases in General
  - Personal Services
  - Delivery
- Most Negatively Impacted:
  - Air Travel
  - Restaurant (Dine-In)
  - Grocery (not curbside/delivery)
  - Hotel

*Source: The Strawhecker Group and Visa Consulting & Analytics Consumer Survey, July 2020*

Visa reports that U.S. spending in these verticals declined 10% to 50% in April but **recovered to growth by end of June**.

#### PAYMENT METHODS

CASH  
26% of surveyed consumers expect to use cash less after the pandemic than before.

| Expectation | Percentage |
|---|---|
| Use cash less | 26% |
| Use cash more | 18% |

*Source: The Strawhecker Group and Visa Consulting & Analytics Consumer Survey, July 2020*

**CARDS**  
27% of consumers surveyed expect to use credit/debit cards more after the pandemic than before.

*Source: The Strawhecker Group and Visa Consulting & Analytics Consumer Survey, July 2020*

In August, debit spending **grew 24%** year-over-year.

*Source: Visa Form 8-K Filed September 1, 2020*

**DIGITAL WALLETS**  
34% of consumers expect to use mobile/digital wallets more after the pandemic than before.

| Expectation | Percentage |
|---|---|
| Increase use | 34% |
| Decrease use | 7% |

*Source: The Strawhecker Group and Visa Consulting & Analytics Consumer Survey, July 2020*

Contactless cards  
41% of respondents reported they have a contactless credit/debit card, and 60% use their contactless card for at least half of their purchases.

*Source: The Strawhecker Group and Visa Consulting & Analytics Consumer Survey, July 2020*

#### CONTACTLESS ADOPTION

Contactless adoption varies across verticals. Education, access, and broader enablement-particularly at small merchants-will help drive consumer contactless adoption.

##### Growth in Contactless Payments

*Visa contactless usage is up **40%** in Q2 2020 year-over-year.*

Consumers surveyed vary in their sentiment on when they feel they can resume a normal lifestyle.

#### BACK TO “NORMAL”

An average of 41% of consumers are comfortable resuming their normal lifestyle now if they take protective measures such as social distancing. 59% will not be comfortable resuming their normal lifestyle until additional progress is made to alleviate the pandemic.

##### Average Comfortability Score

| Comfortable | Percentage |
|---|---|
| Now | 41% |
| Not Comfy | 59% |

*Source: The Strawhecker Group and Visa Consulting & Analytics Consumer Survey, July 2020*

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**Forward Looking Statements**  
This report contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are generally identified by words such as “outlook,” “forecast,” “projected,” “could,” “expects,” “will,” and other similar expressions.

**Disclaimer**  
Studies, survey results, research, recommendations, opportunity assessments, etc. should be considered directional only.