Debit Card Study Shows Continuing Increase in Usage With Young Leading the Way
GREENWOOD VILLAGE, Colo. -- First Data released the findings of the 2007 Consumer Payments Usage and Segmentation Study that discovered trends in debit card and related products.The study found that the percentage of cardholders who have used their ATM/debit cards in the last 30 days is continuing to increase from 2006. The 2006 findings reported 85% of those surveyed had used their ATM/debit cards in the last 30 days, but the 2007 findings showed a slight increase to 87%. The percentage of cardholders that have used their card in the past 30 days to pay for goods and services also saw an increase from 2006, with 70% reported for 2006 and 74% for 2007.
The highest percentage of debit card usage was reported in the age group 25 to 41 at 82%. Ages 18 to 24 reported the second highest debit card usage with 77%; ages 42 to 60 reported 70% usage, and ages 61+ reported 59%.
When examining the amount of money spent by PIN ATM/debit card users at the point of sale, half of cardholders felt that they spend more than when paying with cash or checks. Thirty-two percent reported that they spend the same amount of money as when they pay with cash or checks and 16% reported that they spend less.
The study also showed that typically younger and higher income consumers spend more money when using PIN debit cards. Age groups 18 to 24 and 25 to 41 tied at 56% for spending more when using a PIN debit. Ages 42 to 60 reported 49% spend more, and ages 61+ reported that 38% spend more. Consumers with income of 100,000 or more showed that 56% spend more when using PIN debit. The percentage decreased according to income, as consumers with income of $50,000 to $100,000 reported 54% and consumers with income under $50,000 reported 46% spend more when using PIN debit.
When it comes to PIN and signature debit the study found that consumers who used both PIN and signature debit did more total transactions than those who used either PIN or signature debit alone. Consumers using both performed 23 transactions while consumers using signature did 17, and consumers using PIN did 12 transactions.
Looking at reasons why cardholders prefer different payment methods for purchase, the study concluded that financial institutions should promote both PIN and signature debit to lead to greater transaction volume and increased customer loyalty.
The study was a random telephone survey conducted between Oct. 30, 2007 and Dec. 2, 2007 and had a total of 3,523 respondents.