Debit Card rise continues
(20 October 2009 – Australia) Figures released by the Reserve Bank of Australia (RBA) last week have shown a continuing shift to debit cards from credit cards when making purchases.
The RBA data has revealed that Australians spent 1.5 percent less from July to August on purchases and cash advances on credit cards, dropping the amount to A$18.8 billion for August.
Total EFTPOS purchases, including cash withdrawals, increased by 2.1 percent to A$11.8 billion for the month and purchases on debit cards increased by 13.8 percent, the RBA data indicated.
The new RBA data is in line with recent East & Partners research that indicates a significant rise in merchant sales paid for by debit cards.
The findings come from East’s latest six-monthly Merchant Acquiring and Cards Markets research program, conducted during June 2009, which revealed that 28.9 percent of merchant sales are now paid for with debit cards, a substantial increase of 18.6 percent since December last year.
East & Partners’ financial markets analyst, Zoran Knezevic, said that while credit cards are the dominant method of payment, their dominance has been declining as consumers react to the tougher economy, high credit card interest rates and increasing surcharging of credit cards.
The RBA data also revealed that cash advances on credit and charge cards declined by 2.6 percent in August and are down 9.2 percent from the previous year. Repayments on credit cards rose by 4.2 percent for the year, but decreased by 4.5 percent for August.
Total EFTPOS purchases, including cash withdrawals, increased by 2.1 percent to A$11.8 billion for the month and purchases on debit cards increased by 13.8 percent, the RBA data indicated.
The new RBA data is in line with recent East & Partners research that indicates a significant rise in merchant sales paid for by debit cards.
The findings come from East’s latest six-monthly Merchant Acquiring and Cards Markets research program, conducted during June 2009, which revealed that 28.9 percent of merchant sales are now paid for with debit cards, a substantial increase of 18.6 percent since December last year.
East & Partners’ financial markets analyst, Zoran Knezevic, said that while credit cards are the dominant method of payment, their dominance has been declining as consumers react to the tougher economy, high credit card interest rates and increasing surcharging of credit cards.
The RBA data also revealed that cash advances on credit and charge cards declined by 2.6 percent in August and are down 9.2 percent from the previous year. Repayments on credit cards rose by 4.2 percent for the year, but decreased by 4.5 percent for August.
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