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Data for today’s episode is provided by Mercator Advisory Group’s report – 2019 Annual U.S. Debit Market Data Review
If fewer debit cards are being compromised, why are consumers using more credit online?
- In 2018, only 17% of consumers reported their debit cards lost, stolen, or compromised
- Compared to 2015 & 2016, where 23% of consumers reported lost, stolen, or compromised debit cards
- Consumers are shifting their retail sales to digital channels – now 15% of retail
- But digital debit card transactions aren’t keeping pace – in 2016 & 2017, 38% of consumers preferred credit to 20% debit
- In 2018, the contrast grew: 42% of consumers prefer credit to 19% debit
- The fear of fraud compromising checking accounts & the ease of credit dispute resolution are driving factors
- Conversely, online wallets – which are actually safer than credit or debit – are not seen that way by consumers….
About the Report
Debit cards turned in another year of very solid transaction growth in the U.S., albeit not quite as robust as the previous year, which may be reflective of an underlying weakening of consumer confidence. However, some new trends are likely to have a positive influence on the market, according to the report.
Mercator Advisory Group has released new research on the U.S. debit cards in the 2019 Annual U.S. Debit Market Data Review. Mercator Advisory Group’s fourth annual review of the market dynamics in the U.S. debit industry focuses on trends and events impacting the industry.
“This report is the fourth annual debit data review compiled by Mercator Advisory Group and new trends continue to influence this very mature payments product,” commented Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report. “The most influential events include the anticipated consolidation of EFT debit networks as their large processor owners propose to merge, the beginning of contactless debit card issuance, the growing influence of debit push payments on network transactions and approaches to battle card-not-present fraud.”
This report has 21 pages and 15 exhibits.
Companies mentioned in this report include: Bank of America, BB&T, Chase Bank, Discover, EMVCo, First Data, Fifth Third Bank, FIS, Fiserv, HSBC, Key Bank, M&T Bank, Mastercard, PayPal, Santander, Shazam, Square, Starbucks, TD Bank, Visa, Wells Fargo Bank, and Worldpay.
Debit cards turned in another year of very solid transaction growth in the U.S., albeit not quite as robust as the previous year, which may be reflective of an underlying weakening of consumer confidence. However, some new trends are likely to have a positive influence on the market, according to the report.
