According to Mercator Advisory Group, using cards that make automatic deductions from a
checking account is at a seven year
low in young adults.
There’s been no change in usage numbers for most of the general population. However, the
difference is small. 59% of the American population use debit while 56% of young adults use it.
But, if you are particularly interested in having young people use credit cards, these numbers
should be concerning.
Mercator also found a drop in usage among high income
earners, while only 52% of people
earning more than $100,000 use a debit card for purchases.
Alternative payment methods such as mobile pay could be contributing to these numbers.
Experts suggest that younger consumers have more instances of card fraud, and are advised to
not share debit card numbers with merchants. With credit, consumers generally dispute the
fraudulent charges and don’t pay them. With debit, it is a longer process because the consumer
has to lobby the bank to get the funds back.
Many young adults who use debit cards are more likely to use cards with rewards, but fewer
banks are offering debit card rewards. Many consumers who use ATMs use debit cards, and
most cards can act as credit and debit cards. About 51% of Americans use debit cards but don’t
use them to purchase items.
About 42% of consumers use mobile based
account controls for their debit card to control their
spending and avoid fraud. Due to One factor that might play a small role in decreased debit
usage — banks have been slow to add EMV chips to many debit cards. More than double the
number of consumers say they have chip credit cards than debit cards, Augustine said. There are
many ambiguous specifications, but there are still about 2.5 times as many consumers with
chip enabled
credit cards than chip enabled
debit cards. The fact of the matter is that many
consumers have concerns about using debit cards at online retailers.
These instances of fraud can be minimized by monitoring credit statements regularly.
Additionally, check your credit reports for free every year at AnnualCreditReport.com, or check
your credit scores for free every month at Credit.com.