Consumer spending on the rise
June 27, 2013

By investing in payment integration, companies can offer multiple options for customers to purchase products at the point of sale. According to the U.S. Commerce Department, consumer spending increased across the country by 0.3 percent in May, reversing April's dip of 0.3 percent. Small businesses may begin to see customers buy more goods and use their plastic more often as a result.

MarketWatch reported April had seen the largest decline in consumer purchasing behavior in the past four years. The rise last month may be due to recent economic improvements, as the economy grew by 1.8 percent in the first quarter of 2013 despite the introduction of additional federal taxes in January. With paychecks down slightly, consumer spending dropped in the beginning of the year. While economic expansion is set to continue at a rate of 1.5 percent, small- and medium-sized businesses can expect to see steady increases in consumer spending throughout the rest of 2013.

According to Reuters, improvements in the unemployment rate may also be a factor in the increase in consumer purchasing activity. As more people have a steady income, their financial security rises as well, resulting in higher spending levels. SMBs may see a pick-up in business as consumers start to spend more at the point of sale. Accepting debit and credit cards as well as checks allows SMBs to boost their revenue stream by ensuring customers are able to buy products and services with their preferred payment method. 

Nexus: G-WEBCD2