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Data for today’s episode is provided by Mercator Advisory Group’s report – 2021 Outlook: U.S. Debit Cards and Alternative Products
Looking Forward in Debit to 2021:
- The Mastercard & Visa debit card market will continue strong growth in 2021, coming off a year of 9% growth in 2020.
- Visa & Mastercard debit purchase volumes are forecasted out to $843 billion by Q4 2021.
- Depending on additional federal stimulus benefits in 2021, debit could achieve low double-digit growth.
- COVID-19 has resulted in consumers shopping at fewer stores and maintaining higher transaction value (~$40).
- Promising vaccine news forecasts a potential return to typical spending patterns: high $30 debit transactions and more use of credit cards.
- Increased use in debit for card-not-present transactions like delivery, curbside pickup, in-store or in-restaurant will likely be habits that continue post-COVID.
- Debit rewards programs and adjusting fraud solutions to aim more at remote purchases are two potential areas of focus for card issuers.
The events following the onset of the global pandemic helped to crystalize consumer attitudes regarding payment habits.
The progression of digital payments, contactless options and the momentum achieved by faster and real-time payments shone a light on the path these payment types would take as they leapfrogged in development and use by two to three years in the span of just a few months. The pandemic gave users a reason, beyond technology for the sake of technology, to adopt these payments.