TransUnion and Edgar, Dunn & Company have introduced their second scoring model to identify predictive credit behavior characteristics using survey-based data. The “Revolver Model” is based on data from the “PaymentDynamics 2007 Preferred Payments Study.” The “Revolver Model” joins the “Payment Preference Model” as part of the “PaymentDynamics Suite” which was introduced in July 2007. The suite is designed to allow retail banks, financial services companies, credit card issuers, and card associations to maximize and prioritize direct product offer strategies across the full payment spectrum of cash, check, debit cards and credit cards.
TransUnion and Edgar, Dunn & Company have launched their “Payment Preference Model”, a direct marketing solution that combines individual credit behavior with payment preference data from the “PaymentDynamics 2007 Preferred Payment Study”. The model offers financial institutions a predictive marketing tool that has the capability to offer payment products based on a customer’s particular payment preferences. The Payment Preference Model is well suited for retail banks, financial services companies, credit card issuers, and card associations to maximize and prioritize direct product offer strategies across the full payment spectrum of cash, check, debit cards and credit cards. Edgar, Dunn & Company is an independent global financial services and payments consultancy. TransUnion is a global leader in credit and information management.
A new survey shows that more consumers are shedding payment products compared to two years ago. Nearly half of those trimming their wallets have canceled or reduced their usage of standard credit cards. The “PaymentDynamics 2007 Preferred Payments Study” by TransUnion and Edgar, Dunn & Company reveals that 20% of consumers said they shed payment products in 2006 compared to 16% in 2004. Of those that have canceled or reduced their usage of payment product in the past 12 months, about 14% have done so with either a store credit card, debit card or a rewards credit card. Only 10% have canceled or dropped a co-branded or affinity credit card. In contrast, 31% of respondents added a new payment device to their wallet this past year versus 56% in 2004. The study also revealed that more consumers prefer debit cards than any other type of payment for point-of-sale purchases.
A new study has found that more consumers prefer debit cards than any other type of payment for POS purchases. This is the first time in the study’s history that debit cards exceeded all other payment devices as the overall preferred payment product. The “PaymentDynamics 2007 Preferred Payments Study” from TransUnion and Edgar, Dunn & Company found that 29% of respondents prefer debit cards versus 26% for credit cards. This year’s study shows fewer consumers are adding payment products to their wallets and more consumers are eliminating products from their wallets than in prior years’ studies. Only 31% of respondents added a new payment device to their wallet this past year versus 56% in 2004, while 20% of consumers said they shed payment products compared to 16% in 2004. The study also showed that rewards credit cards represent 50% of all preferred credit cards with 83% of rewards card owners using their reward credit card.
Edgar, Dunn & Company and TransUion are combining resources and data to develop the “PaymentDynamics 2006 Preferred Payments Study.” The study is the first of its kind to combine consumer payment attitudes, behavior and credit information. The study will not only provide financial institutions with a complex understanding of their customer’s payment needs, but it also will include the predictive and profiling tools necessary to drive profitable growth across their product portfolios. The study’s findings will be available beginning in the fourth quarter 2006. “PaymentDynamics 2006” is a continuation of EDC studies on consumer payment preferences, attitudes and behavior conducted in 2000, 2004 and 2005. This marks the first year EDC will partner with a large credit reporting entity, like TransUnion, to incorporate consumer credit information into the findings and market profilings.
A new survey of 6,500 American consumers has found that nearly six out of ten prefer to use rewards-based credit cards, and that nearly 90% of these consumers said they would not reduce usage or cancel their preferred reward card. The wallet research also found that 38% of consumers stated they prefer using their debit card for purchases. Edgar, Dunn & Company’s “PaymentDynamics 2004 Preferred Card Study” revealed that over half of consumers surveyed hold a debit card or some type of credit card today that wasn’t in their wallet a year ago with the number of cards in the wallet increasing to 4.3 in 2003, up from 3.3 in 1999. The study found that nearly 40% of consumers report canceling or reducing the use of an average of nearly two payment cards. About 60% of consumers applied for and received an average of 1.5 new payment cards, and 85% of those are actively using the new cards. Edgar Dunn says price and attitudes toward increased fiscal responsibility were cited by 66% of consumers who have canceled or reduced the usage of cards they have owned.