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- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
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- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
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- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
11th August 2015
Debit industry changes markedly in 10 years of the Debit Issuer Study
Trend
The 2015 Debit Issuer Study, commissioned by PULSE (a Discover company), and conducted by Oliver Wyman, highlights the underlying trends that have contributed to the rise of debit during the 10 years since the study was introduced. The analysis of the past “Decade of Debit” finds the use of debit increasing significantly at the point of sale:
Figures for 2014 (compared with 2005):
• Monthly POS Transactions per Active Debit Card: 21.2 (16.1)
• Annual Spend per Active Debit Card: $9,291 ($7,807)
• Average Ticket Size: $37 ($40)
• Monthly ATM withdrawals per Active Debit Card: 2.0 (3.4)
“The past decade saw a major shift in consumer preference to paying with debit cards, which accelerated after the 2008-2009 recession,” said Steve Sievert, Executive Vice President of Marketing and Communications for PULSE. “We believe there is still opportunity for debit growth, considering that consumer use of debit for smaller purchases is rising, and the average active debit card is used about five times per week.”
Ten years ago, debit cards had just overtaken credit cards as consumers’ most commonly used payment method. Now, there are over 50 billion PIN, signature and prepaid debit transactions in the US every year, according to the Federal Reserve – almost twice as many as credit, the next most commonly used non-cash payment method. The average active cardholder conducted 23.2 debit transactions (POS and ATM) per month last year, according to the study.
During this decade, the average debit cardholder increased usage of debit at the POS by 32 per cent. In the same timeframe, card use for ATM withdrawals declined by 41 per cent.
“Consumer use of debit has been nothing short of remarkable,” said Tony Hayes, a partner at Oliver Wyman. “Debit has steadily gained wallet share as consumers shift their spending to this payment type. The use of debit for small-ticket purchases is particularly noteworthy, where one-third of all debit transactions are for less than $10 – purchases that historically would have been made with cash or not at all.”
Seventy financial institutions – including large banks, credit unions and community banks – participated in the study. Collectively, the participants issue approximately 147million debit cards, representing approximately 47 per cent of total US debit transactions. The sample is representative of the US debit market in terms of institution type, geography and debit network participation.