Plastiq Reveals Q2 Retail & Consumer Spend Trends – Inventory +22% , Advertising Up 11% QoQ

Popular customer segments served by Plastiq are DTC brands, retailers, and wholesalers. These businesses leverage Plastiq to shorten the cash conversion cycle for inventory payments and float cash for advertising costs. Combined, these expenses can be up to 70% of COGs.

Popular customer segments served by Plastiq are DTC brands, retailers, and wholesalers. These businesses leverage Plastiq to shorten the cash conversion cycle for inventory payments and float cash for advertising costs. Combined, these expenses can be up to 70% of COGs.

Comparing these card payment categories between Q1 2022 to Q2 2022 revealed the following changes in spend:

^UP The inventory category increased 22% QoQ in processing volume and transaction counts were up 11%

^UP Spending in the advertising category, which includes Facebook, Google, TikTok and traditional ad media, was up 11%

\ DOWN Back office expenses, such as computer hardware and software declined 13% QoQ

\ DOWN Consumer real estate payments including mortgage, rent, and home lending payments was down 14%

\ DOWN Consumer spend on membership clubs was down 16%

In spite of the current market downturn, our proprietary data shows some bright spots, especially for businesses. DTC brands, retailers, and wholesalers are increasing spend on inventory and advertising. By leveraging Plastiq to fund these expenditures through credit cards, as well as new short term financing options, brands can continue to extend terms and float cash to accelerate growth.