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Data for today’s episode is provided by Mercator Advisory Group’s report –2020 Annual U.S. Debit Card Market Data Review
Quantifying the Massive Growth in Contactless Payments:
- According to Mastercard, 51% of consumers are using contactless (credit, debit, wallet).
- Mastercard: 33% of US consumers have switched their top-of-wallet card to contactless.
- Mastercard: 45% of US consumers prefer to shop at stores that have contactless POS.
- Mastercard: 56% of US consumers will continue using contactless post-Covid.
- According to Visa, 31 million Americans tapped a Visa contactless card in March, up from 25 million in November.
- Visa: Contactless usage has grown 150% since March 2019.
- Visa: At 175 million cards, the US has the most contactless cards of any market globally.
Debit card activity in the United States was very brisk in 2019, posting strong growth, but the future growth of debit cards and how they will be used will change materially as the economy is altered by the impacts of the global novel coronavirus pandemic. Mercator Advisory Group’s latest research report, 2020 Annual U.S. Debit Card Market Data Review, presents data on how the market was progressing and what the future may hold for debit card issuers and cardholders.
“Use of debit cards now and in the near term will be slowed the most by historically high unemployment, which affects typical debit card users, who make less than $75,000 annually on average, and by the closure of all but essential retailers. Offsetting this is the trend seen in the past of consumers favoring debit during recessionary periods,” commented Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group, author of the report.