Cyber Monday 2018: Late night credit applications and mobile purchasing are trending

by Carmel Maher

Carmel Maher

In our last post, we shared new trends developing in 2018 that transformed the traditional Black Friday kick-off to holiday shopping. Specifically, online purchasing was a popular choice for many Black Friday diehards. Did that dampen the Cyber Monday tradition of online shopping? Not a bit. Sales this year reached $7.9 billion, making it the largest online shopping day in U.S. history.¹

Cyber Monday also revealed new trends. Consumers shifted from shopping during the workday to late night spending sprees. The peak purchasing hours were between 7 p.m. PT and 10 p.m. PT (10 p.m. ET and 1 a.m. ET early Tuesday)—in just three hours online shoppers spent an estimated $1.7 billion in online sales.² To give that number perspective, that is about $300 million more than an average full day during the year.³

ID Analytics analyzed credit application volumes in our ID Network® and they followed the same trend. Cyber Monday experienced a 17 percent decrease in credit applications when compared to Black Friday, however there was a 13 percent increase in the number of applications opened between 7 p.m. PT and midnight PT (see Figure 1) and a more than 50 percent increase in applications when compared to an average day during the same timeframe.⁴ Cyber Monday also generated a 20 percent increase in credit application volumes when compared to a regular day.⁵

Cyber Monday Credit Application volumes 2018

Figure 1. 2018 Cyber Monday credit application volume compared to Black Friday

Another Cyber Monday trend to note was that smartphone sales rang in at $2.1 billion, up 48 percent over a year ago, and more than 50 percent of customer shopping was done via mobile devices.⁶ Based on our research we can hypothesize that an increase in spending coincides with increases in credit application volumes. If consumers are shopping on their mobile devices, they are likely applying for credit through the same channel. An ID Analytics’ study from Black Friday 2017 revealed that retailers saw potential increased fraud risk particularly through the online channel. With the rise on both Black Friday and Cyber Monday in online credit applications and the trend toward mobile purchasing, organizations today require up-to-the minute insight into new account fraud risk across all channels.

Learn more about how ID Analytics fraud risk solutions can help you grow your business without growing risk.

 

Carmel Maher is the Product Marketing Manager for ID Analytics

 

1. CNBC.com, https://www.cnbc.com/2018/11/27/cyber-monday-sales-break-record-a-record-7point9-billion-spent-online.html (accessed November 27, 2018).

2. USA Today, https://www.usatoday.com/story/money/2018/11/27/cyber-monday-sales-7-9-billion-top-record-online-sales-estimate/2123414002/ (accessed November 27, 2018).

3. Ibid.

4. Data based on credit and loan application information tracked by the ID Network, 2018.

5. Ibid.

6. Ibid, 2.