Credit cards fall from favour, debit cards in vogue

The Australian love affair with credit cards seems to be on the rocks, with consumers wooed by a new, more responsible suitor.

According to research carried out by East & Partners, 28.9 per cent of all shop sales were carried out using a debit card in the first half of this year, up from around 24 per cent in the last half of 2008.

The company’s number cruncher Zoran Knezevic said that while there has been a gradual shift towards debit cards, their popularity has soared in the wake of the economic crisis.

He added that debit cards may overtake credit cards as the preferred payment option if this trend continues.

"If this current trend that we’ve seen over the past six months were to continue for the rest of the year, that would be the case," Mr Knezevic said.

Other recent research from East & Partners has shown that consumers are growing increasingly unhappy about the levels of service afforded them by their bank.

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