Debit cards rising in popularity

25 August 2009

Figures reported yesterday detailed how credit cards usage was declining somewhat according to both the Reserve Bank of Australia and major banks financial results and trends. To be exact, the Reserve Bank of Australia showed that the average credit card balance was down 0.2 per cent on a year ago for the month of June.

Overall, the figures showed that consumers are now more hesitant when it comes to using their credit cards for various costs and purchases. See Credit cards use declines as people opt for cash payments for more information.

Of course, in light of these figures, it has now emerged that debit cards are growing in popularity, especially Visa and Mastercard debit cards. As it stands now, debit cards now take up 35.8 per cent of all card payments. What's more, the purchase value compared between June 2008 and June 2009 was an increase of a massive 40 per cent.

Debit accounts are apparently increasing at the fastest rate in the industry; at more than double that of credit and charge accounts, according to MWE Consulting.

Market share figures showed that:

Scheme debit increased 21.3 per cent share of the value of debit purchases in March 2008
Recorded at 26.7per cent in June 2009
This is a 24 per cent increase in market share in 12 months

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