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Mercator: Debit card use grows at double-digit pace

Friday, July 16, 2021 — 12:10:04 (EDT)

BOSTON (PRWEB) JULY 15, 2021--Dollar volume spent on debit cards in the U.S. rose by 14% as a result of generous government benefits and a change in consumers’ payment preferences that shifted away from checks, cash, and credit cards. This and other aspects of the current market for debit cards are reviewed in Mercator Advisory Group’s report, 2021 Annual U.S. Debit Card Market Data Review: Unprecedented Double-Digit Growth.

”This past year the market experienced a unique environment where consumers sharply shifted their payments towards the use of debit cards and because some of this shift came at the expense of credit cards, this was positive for debit issuers and, at the same time, positive for merchants as credit card transactions are nearly always more expensive to process than debit cards. Issuers are interested in encouraging the continued top-of-wallet position that debit cards have achieved, but competition from fintechs plus likely regulatory changes will make this an uphill battle,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.

Highlights of the report include:

Historic look at debit card purchase volumes and transaction totals for 2015-2020 Comparison of debit’s growth with the recent decline of credit card use The continued growth of card accounts driven in part by neo and challenger banks The growth of card-not-present activity Commentary on the use of contactless A three-year forecast of debit’s projected growth and the near-term influences that affect the forecast Where issuers are focusing their current investments in debit.

This report has 16 pages and 8 exhibits.

Companies mentioned in this report include: Mastercard, Pulse, Star, Visa Members of Mercator Advisory Group’s Debit Advisory Service have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

For more information and media inquiries, please call Mercator Advisory Group's main line: (781) 419-1700, send e-mail to info@mercatoradvisorygroup.com.

For free industry news, opinions, research, company information and more visit us at www.PaymentsJournal.com.

About Mercator Advisory Group Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Source: Company press release. end of article