Capgemini Study Finds Debit Cards Continue to Take Market Share from Credit Cards

By Kalen Smith, Big4 Blogger

A new global study from Capgemini, RBS and Efma has found that more consumers are using debit cards in lieu of credit cards. The study was published in World Payments Report.

Experts in the financial industry have noticed that customers have started showing a preference for debit cards in recent years. They are an easy way to avoid using cash and don’t come with the fees associated with most credit cards.

The number of transactions involving debit cards has increased by more than 15% over the past year. Approximately a third of all noncash payments are made with debit card today. Credit cards remain the preferred method of cashless transactions, but debit cards may surpass them in the next couple of years.

Global banks are trying to determine the payment preferences of their customers and respond accordingly. They will be implementing new practices to increase customer satisfaction. In addition, they are forced to respond to a number of new regulations that could curtail development of some payment processing technologies. Many companies are developing more innovative solutions to help their customers make payments more quickly and conveniently.

This may force them to develop new solutions or encourage more of their customers to use one means of payment over another.