Consumers becoming more inclined to use debit cards The recession may be leading more consumers to use their debit cards instead of credit cards, according to a recent report.
In the 2009 Debit Issuer Study released by Pulse this week, debit transactions saw 8 percent growth in the second half of 2008, with a 7 percent growth rate in both PIN and signature-based debit transactions projected for 2009.
"Although the economy is a challenge for debit card issuers, as it is for everyone, debit transaction growth remains strong," Cindy Ballard of Pulse said in a statement, going on to predict continued growth in debit use because "consumers use their debit cards for a large portion of necessary everyday expenses."
Ballard also noted that the debit use is increasingly taking the place of cash transactions - even when small amounts are involved. For example, the report noted that 27 percent of all debit transactions in 2008 were for less than $10.
Another statistic in the report found that active debit card holders are now performing 17.3 point of sale transactions per month, up from 16.6 in 2008.
Wednesday, June 10, 2009
Debit Growth Still Surging
