Debit card spending is king at present

Mozo

Tuesday 14 September 2010

Debit cards are becoming the preferred spending option for a growing number of Australian consumers, it has been suggested.

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CommSec economist Craig James noted that according to the latest Reserve Bank data, fewer dollars are being credited to accounts and fewer dollars are being withdrawn from ATMs while EFTPOS transactions are rising.

Indeed, writing for Switzer.com.au, Mr James said the data showed that the number of EFTPOS-only transactions was up 16.2 per cent on a year ago while all EFTPOS transactions including cash out were up 14.7 per cent.

This contrasted with credit card transactions which were only up by 2.9 per cent on a year ago and thus far below "normal" growth of 14 per cent.

The figures suggest that a growing number of Aussies may now be looking to compare debit cards and control their debts. Summarising his findings, Mr James said: "Cash is king. Fewer dollars are being directly credited to bank accounts, and less cash is being withdrawn from accounts. But the cash must be getting into accounts some way because EFTPOS transactions are growing strongly in preference to credit card payments."

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