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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
Top Debit Considerations in a Pandemic World:
- In the past, debit cardholders have been more reluctant to use debit cards in digital transactions.
- However, 43% of Americans report that they are spending more online due to the pandemic.
- 41% of consumers believe credit cards are safer to use online and 29% feel that resolving a credit card dispute is simply easier.
- Over the long term, Mercator believes that there will be a 20–30% increase in the instances of debit used for e-commerce.
- Interest in debit card controls has reached an all time high of 47% of consumers.
- Nearly 50% of consumers are rewarded through their debit card and in 2019 36% said that it influences their purchasing habits.
- As financial institutions close branch lobbies, services such as card replacements for lost and stolen cards need to be reinvented.
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.