Monday, February 02, 2004

US customers prefer debit now.... start of international convergence?

A customer survey by Edgarr Dunn reveals that the payment preference of US card holders is shifting towards using debit-cards. Their study shows the following preference profile:

- debit cards: 38 %

- standard credit cards: 22 %

- co-brander credit card: 20 %

- loyalty credit: 15 %

- smart credit: 2 %.

The study also showed that the desire to reduce the cost of their payment cards, increase their personal financial discipline and earn greater rewards have been the primary reasons that:

- nearly 50% of consumers are using a card that wasn’t in their wallet a year ago,

- nearly 40% of consumers have canceled or reduced the use of ~2 cards during the same period.

One might conclude that slowly, the payment arena might be moving towards a more similar usage of the best/cheapest/efficient payment methods (debit rather than credit). So although the old classification of the US a s credit-card country is still correct, it may not be in 5 years time.