The Nexo Card Holiday Spending Report 2023/24

• $50,318,595 in transaction volumes were generated by Nexo Card holders over the festive season, despite global economic pressures.
• Credit transactions were the big favorite over Christmas for big-ticket items, while use of debit transactions reached its holiday season peak around New Year's.
• The Nexo Card’s unique credit functionality saved 2,200 BTC (41,000 ETH) from being sold on the market just between November 2023 and January 2024.

The Nexo Card, also known as the Dual Mode Nexo Card, distinguishes itself with a revolutionary ability to function as both a Debit and Credit card in one. As the 2023/2024 holiday season approached, Nexo added a brand new feature to this already impressive card offering – Crypto Spend for Debit Mode. Just in time for the festive rush, the newly launched Crypto Spend for Debit Mode enabled cardholders to seamlessly spend digital assets at over 100 million merchants all over the globe, further enhancing the joy and convenience of holiday shopping and celebrations.

Our consumer spending report highlights how Nexo Card clients spread holiday cheer, leveraging the card's versatile features, be it through keeping their assets with Credit Mode and enjoying up to 2% crypto cashback, and interest rates as low as 0% APR. Or paying with crypto via Debit Mode while earning up to 14% interest p.a., paid out daily.

Exhibit A: Christmas Came Early with $50M in Card Transactions

The Macroeconomic Backdrop

Despite consumer confidence facing pressure due to ongoing inflation, elevated interest rates, and reduced savings, retail spending increased by a healthy 7% this year, indicating a return to pre-pandemic consumer spending patterns, according to PwC’s 2023 Holiday Outlook. Based on data from a McKinsey and Co. survey, this past year’s holiday shopping season started earlier and was expected to last longer than it did in 2022. As early as September, retailers started promoting holiday ads on social media, with many more following in October. And yet, November and December still remained the most hectic holiday shopping months in 2023, with the Black Friday frenzy marking the real start of the Christmas shopping season.

From Macro to $50M in Card Transactions

Against the backdrop of these expectations for the holiday season, Nexo users were rocking around the Bitcoin tree this past holiday season. Data between November 1, 2023 and January 9, 2024 shows:

• $50,318,595 in transaction volume via the Nexo Card was recorded in the holiday season, evidencing a robust increase in consumer spending.
• This is a notable 43.05% uplift in transaction volume from the previous 3-month period.
• The number of Nexo Card transactions also escalated by 32.21%, suggesting holders were more active and more numerous than before, rather than simply spending more.
• As for exactly how many more Nexo Cardholders there were: The card also saw an extraordinary 4.5x rise in users as compared to the August - October 2023 period.

The rise in users was significantly influenced by the introduction of Crypto Spend Debit Mode, which led to a rise of more than 200% in Debit Mode transaction volume in November - January as compared to August - October.

Such a trend is emblematic of the heightened commercial activity typically associated with end-of-year festivities, which include gift purchases and increased social events. This significant surge indicates a substantial adoption of the Nexo Card during the festive period, reflecting consumer confidence and a shift towards embracing digital currency transactions for seasonal spending.

Exhibit B: Saving Your Crypto from “The Holidays”! (Cardholders Borrowed More Than They Spent)

This festive season, Nexo Card users have shown a distinct preference for the card’s Credit Mode both in terms of volumes and transaction count:

• Tx Count: Credit Mode transactions were 3x more common than Debit Mode ones.
• Tx Volumes: The same ratio applies to volumes with credit transactions which amounted to 75% of the total volume, dwarfing the 25% conducted via debit.

Moreover, the Nexo Card played a crucial role this holiday season by saving a remarkable 2,200 BTC (41,000 ETH) from being sold on the market.

Exhibit C: Credit Is for Christmas, Debit Is for New Year’s

As the holiday season unfolded, the pattern of spending among Nexo cardholders showed a distinct trend in their preference between Debit and Credit spending: A preference for credit was pronounced during the rush of Black Friday and the merriment of Christmas, yet as the celebrations culminated on New Year's Eve, a balanced use of both Debit and Credit modes was observed. Here are the numbers:

• Credit spending had its moment leading up to Christmas, peaking notably at 5.5% of its total (Nov. 1 - Jan. 9), closely followed by Black Friday and only then New Year's Eve.
• Debit transactions reached their highest volume around New Year's Eve, comprising 15.3% of the Debit mode's total volume, while Christmas accounted for 9.6%.

This data suggests that users are favoring Credit Mode for larger and potentially more significant purchases.

There are several reasons why users might lean towards credit over debit: credit rewards and benefits like Nexo’s cashback on purchases with Credit Mode, maintaining ownership of their crypto assets, financial flexibility including potential tax advantages, and avoiding selling when the market is down.

The marked preference for credit card usage in the period aligns with the broader spending habits observed globally, where consumers often reserve debit cards for daily expenses and credit cards for more substantial purchases or online transactions where additional protections are valued. Overall, Mastercard’s latest annual results show that volumes across both debit and credit were up 21% year on year. However, according to a November 2023 survey from PYMNTS and i2c, credit cards are the most popular credit product consumers plan to use for holiday purchases, with 62% of consumers planning to do so this past holiday season. Moreover, credit card balances increased 15% YoY to a record $995 billion in the third quarter 2023, per data by TransUnion. On the other hand, 65% of consumers said they were likely to use debit cards to pay for at least some of their holiday shopping.

Exhibit D: Half a Million in Cashback from Holiday Spending?

The cashback feature of the Nexo Card truly shone during the holiday season, with a generous cashback of $521,194 earned by users just between November and early January, marking a 38% increase from previous months. With over 90% of credit transactions rewarding users, this feature not only offered a return on spending but also enhanced the shopping experience, incentivized higher usage, and fostered customer loyalty.

Exhibit E: Jet Set Cardholders Were Ready for Holiday Travels – Especially in Southern Europe

From its very debut, the Nexo Card was a collaboration with Mastercard and DiPocket, providing its clientele with the ability to tap into cryptocurrency-powered liquidity. By leveraging Mastercard’s technological expertise and payment network to ensure cardholders can pay at any location in the world that accepts Mastercard. As we all well know, that’s pretty much everywhere, so let’s look at where in the world users spent with the Nexo Card for the holidays:

Nexo users actively traveled during the 2023/2024 holiday season, utilizing their cards for international expenditures, taking advantage of the card's features to manage holiday-related expenses effectively.

This is marked by the 70.6% uptick in foreign transactions, further pointing to the card's utility in facilitating a seamless holiday (but not only) experience for users, whether at home or abroad. These insights not only reflect the evolving consumer spending behaviors but also highlight the Nexo Card's role in enabling a modern, convenient, and global approach to shopping and financial management.

The Nexo Card, in its holiday appeal, was swiped, tapped, and cherished in 164 countries around the world this season. Amidst the festive frenzy, when it comes to where cardholders are choosing to spend their funds Southern Europe emerged as the region that rode the crypto wave most during the 2023/2024 holiday season:

• Card transactions made in Southern Europe accounted for 33.4% share of overall volumes in Credit mode.
• Concurrently, purchases in this group of countries made up 38.8% of Debit mode volumes

Exhibit F: Top Assets for Holiday Spending?

We told you where, we told you when, we told you how you spent; now check out what you spent.

The assets most widely used as collateral were USDT (31.5%), BTC (27%), and ETH (9.9%). This move not only exemplifies strategic management by individual users but also highlights the Card’s pivotal role in shaping a more resilient and thoughtful crypto market environment. Among the other cryptocurrencies available on Nexo as collateral Solana’s SOL and Ripple’s XRP are notable mentions per cardholder’s choice, following the most popular collateral options.

Exhibit G: Nexo cardholders are integrating crypto into their everyday moments

Nexo cardholders’ spending patterns paint a vivid landscape of digital currency's integration into everyday life. With a diverse array of categories from daily essentials to leisure luxuries, these users are not just engaging with crypto; they're embracing the digital revolution within their daily routines. The trend isn't merely about adopting a new payment method; it's about championing a lifestyle where convenience, innovation, and financial savvy converge.

Here's an overview of how people have been spending their money between Nov 2023 - Jan 2024:

• Retail Rendezvous: Retail and grocery stores have been the reigning champions of crypto card spending, bagging the top spot with 26.7% of the total transaction volume this holiday season. A grand total of $13,447,897 across debit and credit, this is where cardholders are stocking up on their daily needs and perhaps for gifts for the holidays. It's a digital spending spree in the aisles!
• Financial Services Finesse: When it comes to financial savvy, Nexo users aren't shy. With 9.5% of the total transaction volume, this category is where serious business happens. Transferring funds, paying for services, or maybe making some smart investments? The numbers speak for themselves.
• Dining & Wining, but Make It Crypto: Restaurants and eating places gobbled up a respectable share of 9.2% of the total volume. It's not just about the food; it's about savoring the moment with a touch of crypto flair.
• Wanderlust Wallets: Travel & leisure isn't left behind with 7.8% of the total transaction volume. Nexo Card holders are a globetrotting bunch, and they're taking their digital wallets with them.
• Tech & Tales: Books and electronics combined tell a story of a well-read, tech-savvy crowd, embracing e-readers and the latest gadgets, representing 5.7% of the total volume on the Nexo Card this holiday season.

Other notable spending includes automobiles and vehicles, home products, business services and utilities.

Embracing the Future: Nexo Card's Holiday Triumph

The Nexo Card's dual-mode feature has revolutionized the way users interact with their crypto holdings. This holiday season showcased the card's prowess in blending spending and earning, underlined by a significant surge in user engagement and transaction volumes. From festive shopping sprees to savvy strategies for digital assets, the card facilitated a seamless integration of crypto into everyday transactions, proving itself as an indispensable tool in the modern consumer's wallet.