SOURCE: Packaged Facts

June 20, 2008 14:15 ET

Nearly 28 Million Debit Card Transactions Totaled $1.4 Trillion in 2007; Does Anyone Carry Cash Anymore?

NEW YORK, NY--(Marketwire - June 20, 2008) - Packaged Facts' fully updated report, Debit Cards in the U.S., estimates that total debit card dollar volume was nearly $1.4 trillion on over 28 million debit card transactions in 2007. The CAGR over the 2003-2007 period totaled 19.5%, during which time the market more than doubled. It does not appear that this industry will dull either; Packaged Facts forecasts the market will accelerate through 2012, at a CAGR of 13% in dollars and 14% in transactions.

So what is driving business? Just about all of the major issuers promote the use of debit cards for automatic or manual payment of recurring bills. Debit is being used more often than any other form of payment for such everyday purchases as groceries, drug store items and gasoline since it can now be used in small transactions, and in contactless or mobile ones, without a signature.

Another factor affecting growth is incentive programs. Offering reward programs is a trend that is likely to continue its steady momentum as banks increasingly play in the decoupled arena, where reward programs, with or without merchant participation, is a key customer-acquisition tool. Customer segmentation is, more than ever, a crucial element in customer acquisition and retention, well as product/service differentiation.

"As consumers migrated from paper payments to favor plastic, the debit card industry has soared," comments Tatjana Meerman, Publisher of Packaged Facts. "More banks issue cards; more consumers carry and use them, and with greater-than-ever frequency. Unlike with a credit card, shoppers can get cash back with certain debit purchases, to boot."

Packaged Facts' Debit Cards in the U.S., 3rd edition, examines new product trends, offers competitive profiles of industry leaders, provides a behind-the-scenes look into the financial framework facilitating debit card usage, explores opportunities for further market penetration, and looks at consumer trends and behaviors surrounding debit card transactions. For further information visit: http://www.packagedfacts.com/Debit-Cards-1607847/.

Packaged Facts publishes market intelligence on a wide range of consumer industries, including consumer goods and retailing, foods and beverages, demographics, pet, and financial products. Packaged Facts also offers a full range of custom research services. For more information visit www.packagedfacts.com, or contact Jenn Tekin at 240-747-3015 or jtekin@marketresearch.com.

Contact Information