Debit cards are trending with frugal Aussies
When it comes to payment methods, debit cards are trending and are soon to be Australia's most popular plastic payment method.
According to the findings from the Roy Morgan Consumer Finance Single Source Survey, Australians now make over 109 million debit card transactions in an average month compared to just 117 million on credit cards. And with the usage of debit cards expected to continue to grow in popularity, the more conservative plastic card will soon overtake credit usage.
The new trend for paying with a debit cards is being lead by the 18 - 34 year old age group which has seen usage go from 10.3 million in February 2009 to 54.6 million in February 2013. But other changes such as con tactless payment technology and digital wallets are helping with the push away from credit cards, according to The Age.
Similarly the rage for rewards credit cards appears to be simmering out. A report by the RBA shows the cost of gaining a a $100 shopping voucher in rewards points has increased by almost 50 percent since 2004, now requiring an average spend of around $18,000.
"The Australian payments landscape has seen the introduction of alternatives to cash payments over time including credit cards, debit cards, pre-paid cards etc. Against the backdrop of the Global Financial Crisis, uncertainties such as job security and interest rates have caused concern within the Australian Economy. With this in mind, consumers are focusing more on savings than on spending and it is becoming increasingly clear that with the higher use of debit cards over credit cards, consumers are having more control of their own funds," says Norman Morris, Industry Communications Director of Roy Morgan.
According to Dun & Bradstreet's Consumer Credit Card Expectations Survey, of those who own a credit card in Australia, those expecting to make a purchase in the upcoming months, that they could not otherwise afford, has increased up to 41 percent. Those planning to stick with their frugal practices should insure they have the best debit card available with the lowest fees and charges. Compare debit cards here.
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