Debit Card Market Share Sets 2018 Record

on 3:22 PM

As reported in Credit Union Times, debit cards gained market U.S. purchase volume market share in 2018 for the first time since 2011.  The data results from The Nilson Report, saying that debit cards accounted for 40% of purchase volume in 2018.

U.S. credit, debit and prepaid cards accounted for about $6.7 trillion of spending on goods and services in 2018. Credit cards were 54.9% of all purchase volume, down from 55.07% in 2017.

A CO-OP Financial Services survey of 240 U.S. credit unions found that most were optimistic about the future of debit card portfolios. Over a third (38%) said their credit union has issued debit cards to at least 70% of their checking account customers. Overall, debit card accounts will grow about 3% to 4% a year, CO-OP predicts.

Earlier this year, a survey by the Federal Reserve found that for many credit unions and other financial institutions not subject to the Electronic Fund Transfer Act’s interchange cap, the average interchange fee for debit transactions on single-message networks (typically PIN transactions) has continued to fall since the cap took effect in 2011. However, fraud losses for all debit and prepaid card transactions rose between 2015 and 2017.

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