For first time in 20 years, debit card spending loses market share to credit cards
Friday, 29 November 2013
Spending on debit cards has fallen against that on credit cards for the first time in over 20 years, according to payments industry newsletter the Nilson Report.
In the US market for 2012 credit cards accounted for 52.82%, rising from 52.63% the year before, with debit card use falling from 47.27% to 47.18% over the same period. Meanwhile, prepaid card use continued to steadily increase.
This fall is the first in a two-decade long expansion of market share for debit cards, showing that consumers were being more frugal, opting to only use their credit cards when they were absolutely necessary. However, with what is still a very difficult time financially for many Americans, some are being forced to use their credit cards more and more.
David Robertson, publisher of the Nilson Report, said of his findings that “At some point, people run out of money. The behavior has plateaued.” Robertson also predicts that by 2017 the market share of credit cards will increase to 54.72%.
Bloomberg – Nov 12, 2013