Debit card use 'is rocketing'

There is no doubt we are heading towards becoming a cashless society and it is clear that debit cards are leading the way.

According to a new study conducted by Tyro Payments, debit card uptake is soaring across the country.

There is twice the demand that there is for credit cards at the moment, which suggests Aussies have changed their spending habits.

Chief executive officer at the organisation Jost Stollmann said people were using their credit cards far too frivolously ten years ago, but the economic downturn has forced them to take a tighter grip on their finances.

However, he is in no doubt that plastic transactions in general are starting to take over from older forms of payment.

Debit card use grew by 15 per cent in the first quarter of 2012, as 700 million transactions were completed down under.

"As card payments become as fast as and more convenient than cash, they displace
cash and cheque payments," Mr Stollmann remarked.

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