Issuers to Support New Debit Card Trend
The results of the 2019 Debit Issuer Study, commissioned by PULSE®, a debit/ATM network, and conducted by Oliver Wyman, a global management consulting firm, show that consumer debit use has skyrocketed in the last year and will keep soaring. In 2018, the number of debit transactions increased by 6.7% reaching more than 68 billion.
According to the study, people tend to use debit cards more and more often. In 2018, the number of transactions per month per active card reached 24.8 beating 23.7 in the previous year. The main reason for such a leap is the growing popularity of digital payments without presenting a physical card itself. A quarter of all debit transactions in 2018 belonged to card-no-present or CNP transactions versus one fifth in 2017. Such transactions are used in case of making purchases or paying bills online, when neither a card nor its holder is present. On the whole, digital transactions have risen about 24%.
Issuers are not sitting on the fence and ready to support the new tendency. Despite the fact that only 10% currently have contactless debit cards in their product line, 70% more plan to launch those by the end of 2021. It is expected that about 60% of debit cards in the U.S. will be issued as contactless by this time. Moreover, in order to increase customer satisfaction, more than half issuers plan to put the following digital capabilities to use by the end of 2020: virtual cards, cardless ATMs, and self-service disputes.
Digital payments are definitely taking a strong position today. Cardholders are moving away from using ATMs. Only 7% of debit card owners performed cash withdrawal procedures last year. Still customers are not quite satisfied with such an option as mobile wallets. While more than 90% of issuers allow to use their debit cards through digital wallets like Apple Pay, Samsung Pay, Google Pay, etc., only 1% of cardmembers take advantage of those.
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