It’s been a busy few weeks at Current as we started receiving tax refunds for thousands of customers five days faster than traditional banks and we’ve seen the majority of the money is being used for paying back friends and family and bill payments, which is consistent with spending patterns we saw from the second government stimulus payments in December.
We’ve also been talking about our unique approach to working with influencers, winning awards and speaking at even more virtual events so let’s dive right in.
Tax refunds: Paying back friends and family and bills dominate spending
Tax refund season was slightly delayed this year due to stimulus payments but despite the IRS not accepting returns until February 12, it did not impact Current receiving and crediting refunds for its members five days faster than traditional banks.
The spending patterns we’ve seen are similar to those of the second stimulus payments in December, when we were the first fintech to credit payments, and reinforces just how many Americans are hurting for cash and still playing catch up nearly a year after the COVID-19 pandemic led to a shift in the workforce and uncertain economic times.
In just a few weeks of tax refunds, the majority of the funds have been spent on paying back friends and family and paying bills, and we’ve seen shifting consumer spending patterns:
- Spending on paying back friends, family and paying bills have seen a total 15% increase vs. pre-refund spending for members’ who have received their tax refunds on Current
- In particular, sending money with Current Pay has increased nearly 10%
- Average tax refund we have seen is just over $2,000
Much like we saw in December, Americans are still hurting for money and refunds and stimulus are stop gap measures helping people make ends meet. We’ll expect to see similar spending patterns with the next round of stimulus payments.
Why influencers are integral to our brand at Current
Influencers are a core part of Current, as our VP of Marketing Adam Hadi discussed at Tearsheet’s Acquire Conference in February. We were honored to be chosen winners of the Tearsheet Acquire Marketer of the Year award for Adam, whose expertise in influencer marketing dates back to 2014. Adam has always believed influencer marketing was about enabling great content for mutually beneficial relationships and is critical to building trust with consumers, especially in financial services and for a brand like Current with it’s Gen-Z demographic.
Where you can find us next
If you missed Adam speaking at Tearsheet’s Acquire Conference about building a brand for Gen-Z and influencer marketing, you can catch him as the guest in the next Marketing Maestros event on Upstream on March 10 at 6pm ET. RSVP here.
What does the move towards contactless payments mean for consumers? Current VP of Product Josh Stephens will discuss when he joins American Banker and Payments Source for Card Forum: Contactless on March 16 for a panel on ‘Meeting customer needs in the age of contactless and digital payments.’