Debit card issuance and spending is continuing continues to grow, despite continued regulations, according to a report recently released by PULSE and the ABA Banking Journal. Its findings indicate that businesses, eager to continue deriving profit from a growing pool of debit-users, have augmented their operating costs to ensure that their strategies are cost-effective.
“issuers experienced continued growth in their debit businesses in 2012. Overall, there was a 14% increase in PIN transactions and a 6% jump in signature transactions,” the study reported. It goes onto to describe an equally optimistic outlook for 2013, indicating further increases in the two transaction rates. Also, a record number of financial institutions now offer some form of prepaid electronic payment card.
Debit card use continues to spread
This report follows similar findings published by The Guardian earlier this month. They indicated that the youth demographic would push debit card payments forward as the preferred mode of payment in future years. The report indicated that while credit card borrowing had subdued, debit card spending continued to grow, fueled by online merchants and increasingly convenient usage.
This comes on the heels of news that retailers and employers were now starting to issue debit cards to their employees as a form of payment. Companies as large as Wendy’s and Wal-Mart are using recurring payment processing to make their payroll issuances easier for both them and their workers. According to a study from the Boston based Aite group, by 2017, more than $68 billion will be distributed annually via payroll debit cards.
Retailers everywhere are learning to optimize their businesses in new and innovative ways with the help of electronic payment cards and online shopping options. It’s clear that entrepreneurs need to augment their business strategies with payment processing capabilities if they want to take advantage of this consistently growing market.Back To Blog