Australians switch to debit card spending

Mozo

Monday 26 April 2010

A growing number of Australians are switching to debit cards as their preferred method of spending, new figures show.

Reserve Bank of Australia data reveals that credit card use has fallen by almost 17 per cent in the past five years, in stark contrast to debit card use which has risen by more than 30 per cent over the last twelve months.

Speaking to News Limited, Harry Senlitonga, a senior analyst at Datamonitor, said: "Debit scheme cards give consumers the best of both worlds; accessibility of a credit card and they allow the consumer to use their own money."

He noted that Australians are now more inclined to compare debit cards rather than risk the debt problems associated with credit cards.

In addition, it was observed that unlike credit cards, there is no interest and usually no fees involved with a debit card.

In other news, the latest Commonwealth Bank Business Sales Indicator – which tracks the value of credit and debit card transactions processed by the bank – rose by 0.7 per cent in March, which was the strongest growth rate in eight months.

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