Digital Transactions News: With credit card growth sputtering, an expanding debit card market will help lift transaction processors’ volumes for the foreseeable future, according to new research from Goldman Sachs & Co. The investment bank also predicts processors will find robust growth markets in nascent channels like mobile payments and established debit-related markets like prepaid cards.
Debit is seen as a growth engine, offsetting in part the slump in credit. U.S. debit volume will hit $1.187 trillion this year and will exceed credit card volume in 2010, at $1.284 trillion, according to Goldman’s research. Those figures, which include signature and PIN debit traffic at Visa and MasterCard, represent growth rates of 5.4% and 8.2%, respectively, leading the Goldman analysts to nominate the debit market as the “undisputed leader” as a processor growth market.
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