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Debit Card Popularity Grows At The Expense Of Credit Cards

Thursday, September 23, 2010 - 6:41 PM
Wallet Pop blog post cites research by Javelin Strategy & Research that says debit cards continue to become more popular than credit cards. Credit card use has fallen from 87% in 2007 to 56% in 2009 to 45% this year if the trend continues.

I can understand debit card use for reward checking accounts, but if you don't have a reward checking account, I don't understand the popularity of debit cards.
6
Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,675
1. Thursday, September 23, 2010 - 7:16 PM
It would be interesting to see some stats on RCAs and debit card usage. How many active RCAs are there out there? Going from there and assuming an average of 12 uses per month, one could extrapolate how much of a dent the RCAs may have made on cc's.
2
darkdreamer4udarkdreamer4u174 posts since
Jun 11, 2010
Rep Points: 630
2. Friday, September 24, 2010 - 12:26 AM
My guess is that RCAs are a small percentage of debit card use.  I think that the recession and the related concern by many about their financial futures have made them more cautious about their spending habits.  I think that people are becoming wary about incurring debt and credit cards are just a tempation to incur debt.  Debit card usage is an easy way for individuals to self-police themselves to spend no more money than they have.
3
dunkerdunker135 posts since
Jun 11, 2010
Rep Points: 403
3. Friday, September 24, 2010 - 9:33 AM
Agree with dunker. Most CC users cannot control their spending habits.
1
jshannonjshannon5 posts since
Apr 9, 2010
Rep Points: 155
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