Debit card transactions have finally passed credit cards based on the information from the 2nd Quarter of2022 from S&P Global Market Intelligence. The study found the 56.2 of consumers preferred using their debit cards vs 39.5% who preferred using credit cards for purchases. That is a huge change in the way payments are done. Just last year only 40.2% favored debit while 54.6 favored credit cards.
The reasons are varied. The security that is now incorporated with debit card purchases using PIN and card tap are some reasons. The other is that consumers like that there are no chances for interest charges and it helps manage their finances better.
Millennials and Gen Zers are the main drivers of this change. That demographic are often credit averse and like the predictability of debit cards as it corresponds with their checking account balances.
Despite this change, the trend of younger people continuing to use debit cards vs credit cards as they age is unknown. But, heavy use of debit cards is definitely here to stay and seems that it will only grow.
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