This Insight Summary Report from Mercator Advisory Group’s CustomerMonitor
Survey Series reveals that while overall debit card usage in the United States is
holding steady, young adults and high-income earners are shifting away from
debit card use. 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, presents the findings of an online survey of 3,008 U.S. adults
conducted in June 2015.
The
survey 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.
“Consumers
are expressing more security concerns about using debit cards at online
retailers and are consistently demonstrating stronger interest in enhanced
security services. Concerns about security, particularly online, as well as
lack of rewards are potential inhibitors to greater debit card use,” states Karen Augustine,author of the report and manager of Primary
Data Services at Mercator Advisory Group, which includes the
CustomerMonitor Survey Series.
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.
The report is 73 pages long and contains 35 exhibits
Companies mentioned
in the report include:Amazon,
American Express, BillMeLater, Discover, Dwolla, Google,
Facebook, MasterCard, MoneyGram,PayPal, PopMoney, Square,
Venmo, Visa, Walmart, and Western Union.