Debit card adoption may be slowing, figures show

By Mozo ·

The noticeable shift in payments from credit cards to debit cards may have slowed in recent months, it has been observed.

Ian Rogers of Banking Day noted that debit card payments gained 110 basis points in market share of the value of purchases in Australia over the 12 months to May 2010, with more people inclined to compare debit cards as a means of controlling their debt problems.

However, he pointed to the fact that 90 basis points of that shift took place over the first six months of that period while only 20 basis points of it occurred over the second six months.

"The slow down might be surprising, given the promotion by several big banks of scheme debit cards, replacing Eftpos scheme cards," he commented.

Mr Rogers also referred to data which showed an increase in credit and charge card spending in May of $1.7 billion, up to $19.6 billion.

Despite this, MWE Consulting research showed that credit card balances only experienced month-on-month growth of 0.6 per cent in May.

Rising debt concerns have prompted more people to change their spending habits and switch to new cards. According to a recent report in the South Australian Sunday Mail, a nationwide survey of households found that 83 per cent of respondents had been forced to delay buying big items because of financial worries.

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