July 18, 2011 10:33 AM Eastern Daylight Time
- New report shows debit card circulation is rising and expected to reach 5.3 billion by the year 2015 - but what does this mean for banks?
LONDON--(BUSINESS WIRE)--Top financial and professional services information provider VRL has released a new report – ‘Debit Cards As Profit Drivers’ – stating that a combination of consumer confidence, tightening of credit markets and regulatory directives is resulting in debit cards beginning to outnumber credit cards in key markets world-wide.
The ratio of issued debit cards to credit cards has widened significantly since 2008. At the extreme, Germany stands out as a market where credit cards are almost totally absent, and where debit cards dominate; 4 million vs. 101 million respectively. Even where credit cards are in the majority, there has been supernormal growth in debit related payment instruments - Canada is instructive, where the number of debit cards in circulation almost doubled between 2009 and 2010.
Historically debit cards have been low margin products. So why do banks continue to promote their issuance? These and other challenges are explored and dealt with in this report which analyses how the debit market has evolved, as well as providing a roadmap as to how this market may develop over the coming years, and the strategies that banks should adopt to promote margin and profit development. The topics covered in the report include:
- The evolution and current trends in debit cards
- Debit card profitability
- Fraud related problems encountered by issuers
- The consequences of the Durbin Amendment
- How regulatory body interventions can affect issuers profitability
- Exploring the perspectives in different markets
For further details on how to purchase a copy of the report, special offers or for more information please call Jeannie Lam on +44(0)20 7563 5605 or by email info@vrlfinancialnews.com.
