Chase Paymentech Pulse Index Tracks eCommerce Shopping

Each year, the Chase Paymentech Pulse Index tracks more than one million payment transactions daily at 10 of the top 30 U.S. retail Web sites, as identified by Internet Retailer magazine.

In addition to compiling current activity, the Chase Paymentech Pulse Index also presents year-over-year trends and is updated every business day throughout the period to provide historical context on the overall metrics and identify emerging online shopping trends.

"As online shopping becomes more commonplace and more competitive, merchants need every possible tool to create an advantage," said Mike Duffy, president and chief executive officer, Chase Paymentech. "With consumers set to spend $33 billion online this holiday season, the Chase Paymentech Pulse Index will help both us and the broader business community track the heartbeat of these trends throughout the season."

Traditionally, the holiday shopping period is viewed as the time from mid- November through early January, with two key milestones of in-store and online retail traffic being "Black Friday," the day after Thanksgiving, and "Cyber Monday," the following Monday.

The term "Cyber Monday" was coined in 2004 when research revealed that more than three-quarters of online retailers reported a significant increase in sales the Monday after Thanksgiving. However, the significance of this day was called into question in 2006 when the Chase Paymentech Pulse Index tracked the highest number of online retail transactions on December 15, nearly three weeks after the expected peak of "Cyber Monday."

Other key Cyber Holiday insights generated by the 2006 Chase Paymentech Pulse Index include:

• Net sales for tracked merchants during the 2006 holiday season increased by more than 15 percent, matching expert predictions for the industry, including Forrester Research
• The 10 leading e-retailers tracked via the Chase Paymentech Pulse Index totaled $3.26 billion in net sales this season, versus $2.84 billion the previous year
• Consumers tended to do their online shopping early in the week, as Mondays represented the largest traffic gains and Tuesdays averaged the largest daily net-sales totals

This year, Forrester Research has forecast a 21 percent increase in US online retail sales this holiday season. In the report "Outlook for U.S. Online Retail: Holiday 2007", principal analyst Sucharita Mulpuru noted that half of U.S. households now have broadband access and are increasingly familiar with Internet shopping. This report also indicated that consumers care deeply about free shipping promotions and plan to respond to that incentive this year.

Chase Paymentech handles two-thirds of all Internet payment transactions, an average of 500 average Internet payment transactions per second. As such, Chase Paymentech is uniquely positioned to provide and interpret this valuable e-commerce data for the larger business community.

Consumer choice in payments has expanded to the online retail sector, helping to drive growth. Five years ago, most people used credit cards when shopping online. Today, consumers make payment choices based as much on security and convenience, as opposed to solely on price. Chase Paymentech works with its merchants to offer their customers payment choices, such as PayPal and Bill Me Later, providing increased revenue and higher ticket values.