New research shows young adults and high-income earners are shifting away from debit card use.
The latest Insight Summary Report from Mercator Advisory Group’s CustomerMonitor Survey Series reveals usage by both demographic segments declined to a seven-year low in 2015, 52% of households earning $100,000 or more a year and 56% of young adults, which is less than the average (59%).
Young adults and high income earners are also more likely than average to have noted potential or actual fraudulent activities on their debit cards or their card was lost or stolen.
Titled Consumers and Debit in the U.S.: Heightened Security Concerns, the report finds 42% of all consumers expressing an interest in mobile-based account controls for debit cards to avoid fraud and control their spending (a finding with little change since our 2014 survey).
Young adults are especially interested in this mobile feature (55%, up from 48% in 2014), even more showing interest this year. Notably, people who have debit cards but choose not to use them (51%) are more likely than debit card users (43%) to be interested in this feature.
This represents an opportunity for debit card issuers to increase card activation and stimulate greater debit card transaction volume by enhancing perceived security of debit cards.
When asked about value-added services for debit cards, 3 in 5 consumers expressed interest in valuable debit card rewards and enhanced security with identification protection, found to be the two most desirable services for debit cards of the eight the survey question listed. Over half of respondents interested in enhanced security would be willing to pay for this service. Debit card owners who choose not to use debit cards are just as interested in enhanced security and identification protection as in debit card rewards and slightly more likely than average to be interested in both.
Debit card users are more likely than average and more likely than debit card owners who do not use the cards to want more valuable rewards and enhanced security, and significantly more interested in enhanced security than in the next most desirable value-added service.
For a complete archive of more than 58,000 articles published since 1995 visit CardWeb.com’s CardFlash® Library.