A debit card is a plastic card that gives the cardholder a set amount of funds against each purchase that they make. The cards are linked to the cardholder’s bank account, and the funds are transferred immediately upon purchase. Debit cards can be used anywhere credit cards are accepted, and they offer a convenient alternative to cash or checks. Additionally, the cards offer protection against fraud and identity theft. When used responsibly, these cards can be a great way to manage your finances.
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Data for today’s episode is provided by Mercator Advisory Group’s Report: Consumer Payment Choice: Understanding Debit Card User Preferences
Popular Consumer Debit Card Use Cases:
- 66% of consumers use cards to get cash from an ATM.
- 64% of consumers use cards to pay for things in-store by entering their PIN.
- 46% of consumers use cards to pay for things at online retailers by entering their card number online.
- 41% of consumers use cards to pay for things in-store via signature authorization.
- 33% of consumers use cards to pay for things in-store by swiping or inserting their card.
- 32% of consumers use cards to get cash back from a merchant.
- 31% of consumers use cards to pay for household bills online by entering their account number from their card.
About Report
Mercator Advisory Group’s most recent report, Consumer Payment Choice: Understanding Debit Card User Preferences, pulls from a wealth of primary data to form an overview of the typical debit card user. Looking at consumers who indicate a preference for debit transactions, the report reveals key demographic traits of those most likely to rely on their cards.
The report then goes on to explore the many use cases for debit cards, providing insights into the consumer segments most likely to use debit in particular circumstances. Embedded within this analysis are recommendations for issuers and processors intended to support customer engagement and debit utilization.
“85% of U.S. adults have a debit card, spanning across all age groups, income brackets, and education levels. However, differences appear when preference for debit payments is considered. It is critical for issuers and processors to have a solid understanding of who prefers to use debit cards and under which circumstances in order to target marketing and rewards initiatives most effectively,” stated the author of the report, Laura Handly, senior analyst at Mercator Advisory Group.
