Market forces are at play influencing debit transaction growth in the United States. The author’s latest report, 2017 Annual U.S. Debit Data Review, looks at the data and how these influences are impacting all of the participants in the processing and settlement of a debit transaction.
"Some very abrupt changes in consumers’ use of debit have upended the debit card market’s typically reliable growth trajectory. Several factors are at play, some of which are favoring credit, including the availability of credit and the continued growth of online purchases, which has traditionally favored credit cards. This report tracks the events of the last several quarters and market conditions that influence the trends we are seeing in debit volume and what is likely to be most influential in the future," commented Sarah Grotta, Director, Debit Advisory Service and the author of the report.
Highlights of the report include:
- Changes in debit card ownership in the U.S.
- Shifts in the demographics of a typical debit card owner
- Trends in dual-message and single-message debit network transactions and dollar volumes
- Comparison of quarter-over-quarter growth rates for debit card transactions vs credit card transactions
- Analysis of how mobile, EMV, PIN-less debit and the easy availability of credit have affected these trends
- Discussion of the most likely direction for debit in the near term.
1. Executive Summary
3. Forces at Play
4. Debit Cards and Their Users
- Cards in Market
- The Use of Debit Cards
5. What Happened to Global Network Transaction Growth?
6. The Reasons for Debit’s Slowing Growth Rates in the U.S.
- Credit Is Back
- E-Commerce and M-Commerce Are Growing
- Fraud Persists
7. Conclusions: Where Debit Goes Next
List of Figures
Figure 1: Debit’s Place Among Payment Options and Historic Growth in the United States
Figure 2: Timeline of Events Materially Impacting Debit in the United States
Figure 3: Average Debit Interchange for Regulated and Exempt Financial Institutions in the U.S., 2011-2015
Figure 4: Global Network-Branded U.S. Debit Cards, 2016
Figure 5: Debit EMV Card Reissuance in the U.S. Projected to 2019
Figure 6: Young Adults and Affluent Shift Away from Debit Card Use, While Lower-Income Earners Return
Figure 7: Global Network Debit Transactions, Q1 2015 - Q1 2017
Figure 8: Global Network Debit Transaction Value, Q1 2015 - Q1 2017
Figure 9: Growth in Number and Value of Global Network Debit Transactions, 2013-2016
Figure 10: Quarterly Growth Rates of Global Network Transactions: Debit Cards vs. Credit Cards, 2013-2017
Figure 11: U.S. Consumers’ Use of Debit Online, 2015
Figure 12: U.S. Consumers’ Use of Debit vs Other Payment Options for Mobile Purchases, 2016
Figure 13: Shift in Fraud Composition, 2011-2015
Figure 14: Single-Message Debit Transactions: Number and Value, Q1 2015 - Q4 2016