Over the week of August 17–23, sales at small businesses held relatively steady over the preceding week, with some notable exceptions.
The CardFlight Small Business Impact Report is intended to provide insights into the impacts of coronavirus/COVID-19 on small businesses across the United States. The report has been featured in and/or cited by The Atlantic, Bloomberg TV, Business Insider, Digital Transactions, PaymentsJournal, PaymentsSource, and others.
Learn more about the report and our methodology.
First, we examine change in week-over-week small business performance by analyzing change in overall sales, number of transactions per business, and more.
Week-over-week sales at the small businesses in our sample decreased by 0.7% last week.
The transaction count metric represents the total number of transactions processed by the small businesses in our sample. Last week, transaction counts decreased by 0.4%.
This metric measures all businesses who processed at least one transaction in the preceding week. The number of active merchants decreased by 0.1% last week.
The average number of transactions per active merchant decreased by 0.3% last week.
The payments industry has two broad categories for transactions based on where they occur.
Next, we'll examine how coronavirus/COVID-19 is changing the manner by which consumers pay for their goods in-person.
The three ways US consumers typically use credit and debit cards for in-person transactions are:
Since magnetic stripe payments are a relatively low proportion of our payment volume, we're focusing on chip cards and contactless tap. We continue to see that overall growth in sales made via contactless payment methods are outpacing those made via EMV chip.
While payments made via EMV chip are now up 13.4% over their pre-COVID baseline levels, contactless payment methods are up by nearly128%.
In this section of the CardFlight Small Business Impact Report, we take a closer look at small business performance by business category.
Sales at Food and Drink businesses increased by 1.8% last week. Transaction counts decreased by 1.3% week-over-week.
Sales at the Retail businesses in our sample decreased by 7.3% week-over-week. Meanwhile, transaction counts decreased by 1.9%.
Sales at businesses in the Services category increased by 0.1% last week. Meanwhile, transaction counts decreased by 2.1% last week.
Next, we take a look at the month-over-month changes to sales, transaction counts, and number of active merchants at US small businesses. This analysis is based on "whole month" comparisons, using March 2020 as the baseline month.
Sales at the small businesses in our sample ended the month of July 6.5% above June.
Transaction counts ended the month of July 11.1% above June.
The number of active small businesses in our sample ended the month of July 2.2% above June.
The CardFlight Small Business Impact Report is intended to provide insights into the impacts of coronavirus/COVID-19 on small businesses across the United States. The report and the data within have been featured in The Atlantic, Bloomberg TV, Business Insider, Digital Transactions, PaymentsJournal, PaymentsSource, and others.
The report is based on analysis of a representative sample of more than two million transactions processed by more than 65,000 small businesses who use SwipeSimple software (the signature product of CardFlight) to accept credit and debit card payments.
To create this report, we analyzed a representative sample of millions of transactions processed by:
This report can be useful in understanding the impact of COVID-19 on small businesses at a hyper-local perspective and across the US. For up-to-date data regarding shifts in consumer spending among local businesses, impacts across different industries, and across cities and states, access the most recent report.
The typical SwipeSimple merchant has one to ten employees and less than five locations or mobile service points. The average active merchant represented in this data set processes approximately $130,000 in credit/debit card payments annually. The merchants are a mix of professional and personal service providers, specialty retail establishments, and food and drink purveyors.