Millennials are the first generation to come of age in the digital era, and they are quickly making their mark on the world of finance. In particular, millennials are increasingly turning to debit cards as their primary payment method. Debit cards offer several advantages over traditional credit cards, including lower interest rates, no annual fees, and the ability to avoid debt. In addition, debit cards are more widely accepted than credit cards, making them a convenient option for millennials who are always on the go.
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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 Millennial Debit Card Use:
- Millennial refers to people between 25-44 years old.
- 31% of millennial card holders use their cards every day.
- 37% of millennial card holders use their cards a few times a week.
- 14% of millennial card holders use their cards once a week.
- 10% of millennial card holders use their cards a few times a month.
- 3% of millennial card holders use their cards once a month.
- 5% of millennial 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 debit 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.