Zopa Bank has predicted a huge rise in card spending this summer as more lockdown restrictions are lifted.
The digital bank, which was launched as a sister company to peer-to-peer lender Zopa last year after the firm was granted its full bank licence in June 2020, introduced its first credit card in October of last year, which allowed customers to set their own personal financial buffer.
Zopa Bank, which has seen total spending on its credit card rise by 110 per cent from January to April, said that as the stay at home order were lifted, it saw spending on commuter travel among its customers increase by 50 per cent.
The bank said its card spending data has seen flight bookings initially rise by 30 per cent as green list countries were announced, and predicted this to soar as consumers have increased certainty about the requirements for travel.
Zopa Bank also cited ONS data showing that in the week to 29 April “social” and “work-related” card spending were at 74 per cent and 99 per cent of their average levels in February 2020, before the pandemic.
“These figures and our own credit card data suggest we’re heading for a summer of spending, as consumers begin to splash out on much-missed experiences from the last year,” said Clare Gambardella, chief customer officer at Zopa.
“Despite the continued impact of Covid on UK economic performance, it is positive that customer spending is already increasing and looks set for a significant rise as cinemas, theatres, and indoor drinking and dining opens up next week.
“While the ONS study does not yet show an increase in the percentage of people traveling to work, our credit card data suggests that this may well increase significantly next quarter.”