Debit Card Usage To Quadruple In The U.S.

Usage of debit cards in the U.S. has quadrupled since 1995, according to The U.S. Market for Debit Cards, a new market research report by publisher Packaged Facts. From 1995 to 2000, the debit card’s average CAGR was 42%, far outstripping the 14.6% growth in electronic payment overall, and trouncing the 9.5% growth of credit cards. In 2003, Americans made 10.47 billion transactions using their debit, or, “check cards.”

Prior to 1995, fewer than 2% of U.S. consumers used any form of debit card, but, according to Packaged Facts, four primary trends emerged that spurred torrid growth in the market. They include technological advances, like national ATM networks, tech-savvy Americans, weaned on ATM cards and PIN numbers, the education of U.S. consumers by the banking industry about the ease of debit card usage, and, perhaps most importantly, selling Americans on the convenience of the cards.

“The potential for the debit card is wide-ranging and large,” said Don Montuori, Acquisitions Editor for Packaged Facts. “Increasing, Americans are using debit cards for all sorts of purchases and payments, and while the credit card is probably in no imminent danger from debit card competition, certainly the traditional check industry has something to be concerned about.”

For more information at http://www.packagedfacts.com