PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Debit Feeds On Difficult Times in Europe

By Terry X Xie
January 30, 2011
in Mercator Insights
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Internet shopping. Woman shopping online with credit card and laptop.

The global economic downturn and the European debt crisis havecaused great concern to European economies over the past few years.Consequently debit cards appear to be experiencing strong growth asmany European consumers shy away from using credit cards.

Consumers are still wary of the outlook for the overall economy andtheir income so they are more debt averse today than a couple yearsago. This is the case even in markets such as UK where consumershave traditionally enjoyed credit cards.

A recent report from PwC suggests that UK credit card spending isat a five-year low and credit card debt declined slightly last yearto £8,000. The reasons are multi-fold. Banks are becoming morecautious in extending new credit cards, the costs of revolvingcredits on cards have risen, and consumers are working to bettercontrol their spending and personal finances.

At the same time, debit cards are becoming more popular as consumersurveys suggest that many UK consumers plan to use debit card morein the future even if the economy improves. It was reported thatdebit card transactions exceeded cash transactions in 2009 for thefirst time. And Visa Europe noted that its debit card transactionsgrew by 45% in the fiscal year ended September 30, 2010. At thesame time, purchase transactions on Visa-branded credit cards fellduring the same period.

A similar trend could be observed in the US. In the first 3quarters in 2010, Visa-branded debit card spending grew strongly at20.3% while credit card spending grew just 5.3%, according to theNilson Report.

The strong performance of debit cards across the world, especiallythe European market, makes it even more pressing for emergingEuropean card schemes such as PayFair, EAPS, and Monnet to makeprogress in getting a piece of the debit card market.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: DebitMobile PaymentsPrepaid

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Making Real-Time Payments a Reality

    Fulfilling the Promise: Making Real-Time Payments a Reality

    July 10, 2025
    mortgage

    The Rich Benefits of In-House Payment Systems

    July 9, 2025
    digital cards

    Beyond Plastic: Why Digital Cards Are the Future

    July 8, 2025
    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    July 7, 2025
    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025
    Fraud Monitoring

    What to Expect When Nacha’s Fraud Monitoring Rules Take Effect

    July 1, 2025
    payments

    Don’t Just React to What’s Next in Payments—Anticipate It

    June 30, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result