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Debit card use on the decline, study finds

January 31, 2019

The number of consumers who use debit cards for purchases has declined steadily since 2011, the year following enactment of the Durbin Amendment, and now stands at 54 percent, according to a newly released report from Mercator Advisory Group.

This is in spite of high consumer ownership of debit cards and the increasing likelihood that a consumer who opens a checking account will receive a debit card for that account. 

Young adults and adults whose household income is less than $75,000 per year are still more likely to use a debit card for in-store purchases, however, seniors and adults from higher income households are more likely to use credit cards, according to a Mercator press release. 

Only half of debit card users reported using their card for online purchases. Their main reasons for not using debit cards online are:

• 41 percent — perception of greater online security with credit cards.
• 30 percent — fear of checking account compromise.
• 30 percent — lack of debit card rewards.

With the rising use of online payment services such as PayPal, consumers may start to bypass payment cards altogether and simply keep funds in their payment service account, the release said.