While the vast majority of U.S. adults have debit cards, preference for debit transactions is skewed towards younger consumers in lower income brackets. Interestingly, debit was ranked as the most trusted form of payment for both in-store and online transactions by consumers younger than 45 years old. Debit cards were also the most common payment type to be loaded into digital wallets. Debit has numerous competitive advantages over other payment types. This report explores consumer preferences for debit in a variety of use cases.
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Data for today’s episode is provided by Mercator Advisory Group’s Report: Consumer Payment Choice: Understanding Debit Card User Preferences
Frequency of Generation Z Debit Card Use:
- Among adult consumers, Generation Z refers to people between 18-24 years old.
- 29% of Gen Z card holders use their cards every day.
- 35% of Gen Z card holders use their cards a few times a week.
- 17% of Gen Z card holders use their cards once a week.
- 11% of Gen Z card holders use their cards a few times a month.
- 4% of Gen Z card holders use their cards once a month.
- 4% of Gen Z card holders use their cards less than once a month.
Mercator Advisory Group’s most recent report, Consumer Payment Choice: Understanding Debit Card User Preferences, pulls from a wealth of primary data to form an overview of the typical card user. Looking at consumers who indicate a preference for debit transactions, the report reveals key demographic traits of those most likely to rely on their debit cards.
The report then goes on to explore the many use cases for debit cards, providing insights into the consumer segments most likely to use debit in particular circumstances. Embedded within this analysis are recommendations for debit card issuers and processors intended to support customer engagement and debit utilization.
“85% of U.S. adults have a debit card, spanning across all age groups, income brackets, and education levels. However, differences appear when preference for debit payments is considered. It is critical for issuers and processors to have a solid understanding of who prefers to use debit cards and under which circumstances in order to target marketing and rewards initiatives most effectively,” stated the author of the report, Laura Handly, senior analyst at Mercator Advisory Group.