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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
- Which is growing faster: debit card transactions, or debit card transaction values?
- The growth in debit card transaction values is outpacing the growth in debit card transactions
- Both have robust growth:
- Transaction growth: 7.6% (Q1, 2019 vs 2018)
- Transaction value growth = 10.81% (Q1, 2019 vs. 2018)
- So debit card’s average transaction value is increasing, but why??
- The reason: Visa & Mastercard are reporting new types of push payments along with their purchase transactions
- Debit push payments facilitate the rapidly growing market for person-to-person (P2P) transactions.
- Business to consumer disbursements are also using the debit networks for insurance payouts, refunds, & rebates.
- Push payments on average exceed $200, which may be the driver behind increased transaction dollar volumes
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.
