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Data for today’s episode is provided by the Mercator Advisory Group report: Consumer Payment Choice: Understanding Debit Card User Preferences
Popular debit card use cases:
- 66% of consumers use debit cards to withdraw money from an ATM.
- 64% of consumers use debit cards to pay for in-store purchases by entering their PIN.
- 46% of consumers use debit cards to pay for purchases at online retailers by entering their card number online.
- 41% of consumers use debit cards to pay for in-store purchases through signature authorization.
- 33% of consumers use debit cards to pay for in-store purchases by swiping or swiping their debit card.
- 32% of consumers use debit cards to get cash back from a merchant.
- 31% of consumers use debit cards to pay household bills online by entering their account number from their debit card.
About the report
The latest report from the Mercator Advisory Group, Consumer Payment Choice: Understanding Debit Card User Preferences, extracted from a wealth of primary data to form an overview of the typical debit card user. By examining consumers who indicate a preference for debit transactions, the report reveals key demographics of those who are most likely to rely on their debit cards.
The report then explores the many use cases for debit cards, providing insight into the consumer segments most likely to use debit in particular circumstances. This analysis includes recommendations for debit card issuers and processors intended to support customer engagement and debit usage.
“85% of American adults have a debit card, covering all age groups, income brackets and education levels. However, differences emerge when preference for debit payments is taken into account. It is essential that issuers and processors have a solid understanding of who prefers to use debit cards and under what circumstances in order to more effectively target marketing and rewards initiatives,” said the report’s author, Laura Handly, senior analyst at Mercator Advisory Group.