Last week I posted the results of APACS Debit card data. Here's some more information which, I think shows the how strong the debit card market is becoming. An interesting point is that which debit card spending has increased 390%, when adjusted for inflation, credit card spending has declined a startling 6.1% since 2004. The future of card payments looks debit oriented. From a fraud, risk and interchange standpoint, the cost of PIN Debit is less than the current "signature" debit product, which is offline debit. Gotta wear shades. Here's more on APACS recent release of debit card data...
Debit cards continue to grow in favor with UK consumers, while credit card spending declines, according to data from UK payment association APACS . Debit card spending has grown as ATM-only cards have given way to general-purpose Visa- and MasterCard-branded debit cards.
In 2007, debit accounted for 62 percent of all UK plastic card spending, according to APACS. Actual year-on-year growth in debit card spending was almost 15 percent in 2007, or 10.6 percent when adjusted for inflation.
Over the last decade, debit card spending has increased 390 percent from £45 billion (US$89 billion) in 1997 to £221 billion in 2007, says APACS. In the same period, spending on credit and charge cards grew 130 percent from £58 billion in 1997 to £133 billion in 2007. After adjusting for inflation, actual credit card spending has fallen by 6.1 percent since 2004.
In 2007, the number of credit cards in issue declined, as did the number of credit cardholders and regular users, says APACS. Also, the amount of credit card debt outstanding fell by £1.1 billion.
Credit card balance transfers, which had for a number of years attracted new or transferred business, lost their appeal, APACS says. Also, there was little innovation in standard credit card products. The only new products that did encourage new business were charge and premium cards offering reward points and cashback at the top end of the market.
The pattern of decline in credit card usage continued into 2008. In the first five months of 2008, credit card spending increased by only 1.2 percent, a figure that was below the rate of inflation for the period.
Debit cards continue to grow in favor with UK consumers, while credit card spending declines, according to data from UK payment association APACS . Debit card spending has grown as ATM-only cards have given way to general-purpose Visa- and MasterCard-branded debit cards.
In 2007, debit accounted for 62 percent of all UK plastic card spending, according to APACS. Actual year-on-year growth in debit card spending was almost 15 percent in 2007, or 10.6 percent when adjusted for inflation.
Over the last decade, debit card spending has increased 390 percent from £45 billion (US$89 billion) in 1997 to £221 billion in 2007, says APACS. In the same period, spending on credit and charge cards grew 130 percent from £58 billion in 1997 to £133 billion in 2007. After adjusting for inflation, actual credit card spending has fallen by 6.1 percent since 2004.
In 2007, the number of credit cards in issue declined, as did the number of credit cardholders and regular users, says APACS. Also, the amount of credit card debt outstanding fell by £1.1 billion.
Credit card balance transfers, which had for a number of years attracted new or transferred business, lost their appeal, APACS says. Also, there was little innovation in standard credit card products. The only new products that did encourage new business were charge and premium cards offering reward points and cashback at the top end of the market.
The pattern of decline in credit card usage continued into 2008. In the first five months of 2008, credit card spending increased by only 1.2 percent, a figure that was below the rate of inflation for the period.
