Comscore Uncovers the Impact of COVID-19 on Small Business Credit Card Applications

Rhea-AI Summary

Comscore (NASDAQ: SCOR) has released findings indicating a resurgence in interest for small business credit cards after a decline during the first half of 2020 due to COVID-19. Their research highlights that applications for small business credit cards plummeted by 41% year-over-year in Q2 2020 as businesses shifted focus to federal relief loans. However, since June 2020, searches for small business credit cards have begun to recover, suggesting renewed interest among small businesses. The report indicates changing consumer behaviors and potential trends for credit card issuers.

Positive

• Resurgence in interest for small business credit cards noted post-COVID.
• Search activity for small business credit cards has increased since June 2020.

Negative

• 41% year-over-year decline in small business credit card applications in Q2 2020.
• 6% decline in applications in Q1 2020.

RESTON, Va., Sept. 17, 2020 /PRNewswire/ -- New research from Comscore (Nasdaq: SCOR), a trusted partner for planning, transacting and evaluating media across platforms, found indications that interest from small businesses in small business credit cards may be rebounding after a loss in momentum in the first half of 2020.

Using insights from the Comscore Small Business Credit Card Benchmarker, which leverages panel data to produce granular and actionable insights to understand emerging trends in the industry landscape, Comscore's "The COVID-19 Impact on Small Business Credit Card Applications in 2020" whitepaper examines how small business credit card application and research cycles have trended before and during the COVID-19 era and what changing consumer behaviors and potential future trends mean for small business credit card issuers.

Key findings include:

• After growth throughout 2019, small business credit card shopping began to decline in Q1 2020 as the COVID-19 pandemic took hold and small businesses focused on relief through small business loans.
• Submitted small business credit card applications declined during the peak of the pandemic. Q1 2020 saw a 6% year-over-year decline in submitted applications and Q2 saw a 41% year-over-year decline.
• Small business credit card issuers pulled back on paid marketing tactics such as affiliate sites and paid search in Q2 2020. Affiliate sites accounted for 8% of referred applications in Q2 2020, down from 15-20% from the prior year; paid search accounted for 7% of referrals in Q2 2020, down from 55% in the prior quarter. The decrease in marketing, however, did not correlate with a decrease in overall search activity: search referred applications experienced a slight uptick to 26% of total submissions compared to only 22% of submissions in Q1 2020.
• Searches for small business loans outpaced searches for small business credit cards in March and April of 2020 as COVID-19 relief and support were top priorities. Starting in June 2020, however, searches for small business credit cards began to increase slightly, signaling small businesses' renewed interest going into the second half of the year.

To read the full findings of this research, download the "The COVID-19 Impact on Small Business Credit Card Applications in 2020" whitepaper. To learn more about how Comscore can help with insights into the small business credit card landscape, please contact us.

About Comscore
Comscore (NASDAQ: SCOR) is a trusted partner for planning, transacting and evaluating media across platforms. With a data footprint that combines digital, linear TV, over-the-top and theatrical viewership intelligence with advanced audience insights, Comscore allows media buyers and sellers to quantify their multiscreen behavior and make business decisions with confidence. A proven leader in measuring digital and TV audiences and advertising at scale, Comscore is the industry's emerging, third-party source for reliable and comprehensive cross-platform measurement. To learn more, visit www.comscore.com

 

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/comscore-uncovers-the-impact-of-covid-19-on-small-business-credit-card-applications-301132938.html

SOURCE Comscore

FAQ

What does the recent Comscore report say about small business credit card applications?

The report indicates a rebound in interest after a significant decline during the early COVID-19 pandemic, with applications dropping sharply in Q1 and Q2 2020.

When did searches for small business credit cards begin to increase according to the Comscore report?

Searches for small business credit cards began to rise again starting June 2020.

What was the year-over-year decline in small business credit card applications in Q2 2020?

In Q2 2020, there was a 41% year-over-year decline in submitted applications.

How did small business credit card issuers adjust their marketing strategies during the pandemic?

Issuers reduced paid marketing tactics significantly in Q2 2020, with affiliate site referrals dropping from 15-20% to 8%.

What did the Comscore research reveal about consumer behavior regarding credit cards during the pandemic?

Initial focus was on small business loans for relief, but interest in credit cards began to resurface in the latter half of 2020.