HOUSTON—A new study details debit’s rapid rise in the past decade, a period in which the average debit cardholder increased usage at the POS by 32%.
The 2015 Debit Issuer Study by PULSE highlights the underlying trends that have contributed to the rise of debit during the 10 years since the study was introduced. The analysis finds the use of debit increasing significantly at the point of sale: POS transactions per active debit card rose from 16.1 in 2005 to 21.2 in 2014, and annual spend per active debit card in that same period rose from $7,807 to $9,291.
The average ticket size decreased from $40 to $37.
“The past decade saw a major shift in consumer preference to paying with debit cards, which accelerated after the 2008-2009 recession,” said Steve Sievert, executive vice president of marketing and communications for PULSE. “We believe there is still opportunity for debit growth, considering that consumer use of debit for smaller purchases is rising, and the average active debit card is used about five times per week.”
Approximately 50-billion PIN, signature and prepaid debit transactions occur annually in the U.S., according to the Federal Reserve − almost twice as many as credit, the next most commonly used non-cash payment method. The average active cardholder conducted 23.2 debit transactions (POS and ATM) per month last year, according to the study.