First Data Releases Their 21st Annual Consumer Payment Usage Study.
This fourteen page report reports on trends, segmentation opportunities with special focus on six different POS payment categories that consumers tend to be most comfortable: Signature Debit, PIN Debit, Cash + PIN Debit, Cash Only, Check Only and Credit Card. Not surprisingly PIN Debit is "experiencing the most growth" while checks have experienced the greatest decline. The report correlates other payment behavior for each payment category such as bill payment behavior, internet purchases, security concerns and more.
Here are some highlights of the study. As always, click any graphic to enlarge it to full size. To read the study in it's entirety, follow this link:
First Data Consumer Payment Usage Study
Executive Summary For the 21st consecutive year, First Data conducted an annual consumer study to understand and track changes in consumer attitudes and behaviors toward various payment methods. The intent of the annual study is to learn more about critical information for retaining customers, acquiring new customers, differentiating products and services and producing a higher rate of return for businesses. The 2007/2008 Consumer Payments Usage and Segmentation Study revealed key trends that merchants may want to consider in marketing and utilizing ATM/debit cards and related products.
ATM/Debit Card Use Continues to Grow The frequency of using an ATM/debit card increased from 2006 to 2007 with more consumers reporting using their card in the past 30 days. Of particular note is the substantial 11 percent increase (63 percent in 2007 up from 52 percent in 2006) in past 30-day card use by the 61+ age group. In general, the reported number of times an ATM/debit card is used in the past 30 days continues to edge up slightly and is slowly approaching usage level of once per day. According to the survey, usage levels of ATM/debit cards are driven mostly by POS use.
Compared to 2006, the two segments of PIN Debit and Signature Debit comprised a larger share of the marketplace in 2007. This is likely due to consumers gaining more familiarity with electronic payment methods, prolific accessibility to ATM/debit cards and attraction toward the speed, convenience and protection offered by ATM/debit cards relative to traditional payment methods, such as checks. The PIN Debit segment records the highest growth of all segments and is now almost equal in size to the Cash segment, which also posted an increase, though marginal.PIN Debit Segment – Changes Versus 2006
The PIN Debit segment mainly comprises consumers 25 to 60 years. However, in 2007, the proportion of customers age 61 years and older in this segment increased slightly. A gender concentration shift also occurred as more women than men now form a larger part of this segment. Though security remains the top reason users report for preferring PIN debit, speed (faster/quicker) gained ground as a reason in 2007.
