Many in the merchant services field say that younger generations are shying away from credit cards in favor of debit.
According to the head of Massachusetts-based Mercator Advisory Group’s credit advisory arm Ken Paterson, younger adults now earning money for the first time are less likely than their parents to rely as heavily on credit cards.
He said that young people would not be as attracted to the credit card companies’ rewards opportunities and preferred to spend only the money in their accounts.
“We found that consumers have a great deal of loyalty to debit cards and the control it provides over daily finances,” Paterson told ISO and Agent. “Many people, especially younger adults, have set their patterns around using debit, and broader availability of credit and tempting them with credit card rewards programs is not going to make them change their habits.”
Other studies have revealed that overall, more people are using card payments. According to First Data’s SpendTrend study, use of signature debit, credit, checks, PIN debit and EBT cards increased 7.3 percent in 2011 from 2010.Back To Blog