September 23, 2009 08:38 ET

Frugal Consumers and Cautious Lenders Migrate to Debit Cards

ROCKVILLE, MD--(Marketwire - September 23, 2009) - has announced the addition of TowerGroup's new report "Shuffling the Cards: The Migration of Frugal Consumers and Cautious Lenders to a Debit Card World," to their collection of Banking & Financial Services market reports. For more information, visit

Consumers, battered by global recession and confronting an uncertain financial future, are saving more and limiting their expenses to cash on hand, often postponing discretionary and luxury spending decisions until the economy settles.

Card issuers, experiencing decade-peak delinquency and loss rates and uncertain of the impact of upcoming regulations, are cautious.

Credit card "revolvers," borrowers who elect to pay less than their balance in full each month, will soon fall into two classes: those who carry favorable terms and choose to carry a balance and those who are unable to pay in full.

The central card transaction device is now the debit card, which is linked to a consumer's demand deposit account (DDA) and in most cases paycheck and which will continue to grow through the recession and after economic recovery.

Forward-thinking card issuers will design strategies to accommodate consumers' shift to debit cards and position their payment cards to deepen cardholder relationships in a changing environment.

Topics covered in the report include...
Report Coverage
Centrality of the Debit Card to the New Economy
Contactless Payment Cards

For more information visit

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