Consumers control spending with debit cards
Growing numbers of Australians are using debit cards to control their spending, it has been claimed.
According to financial services firm Canstar Cannex’s financial analyst Harry Senlitonga, debit card use in the country has increased at a faster rate than either credit card spending or EFTPOS use.
Debit card transactions climbed by 39 per cent last year, while credit card and EFTPOS payments increased by just 14.9 and 12.45 per cent respectively.
Speaking to the Sydney Morning Herald, Mr Senlitonga said: "A debit card can be used over the internet, it can be used over the counter when you are overseas and some people like it because it is not a credit card, you are using your money."
"Some people see it as the best of both worlds as it has the same acceptance as credit cards," he added.
Meanwhile, CommSec economist Savanth Sebastian told the news provider that the "era of consumer conservatism is here to stay".
Recently, Paul Clitheroe, director of financial planning firm ipac, told the Sunshine Coast Daily that debit cards work best for people who adhere to spending budgets.
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