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New Market Study Published: Debit Cards As Profit Drivers

Recently published research from Timetric, "Debit Cards as Profit Drivers", is now available at Fast Market Research


Boston, MA -- (SBWIRE) -- 06/18/2012 -- Debit cards have started to outnumber credit cards in most countries across the world, in many cases irrespective of the area and related economic development. However, when compared to credit cards, the real convenience of issuing debit cards, from the bank's perspective, may not be straightforward. Credit cards, as a type of loan, have always proved much more attractive because structural features allow issuers to generate high margins. A quick comparison of the internet space devoted to debit cards, and to credit cards, shows how the former has been overwhelmed by its credit counterparts.

Amongst the most relevant examples from different areas of the globe, Germany, as a cash-based society, stands out with an almost total absence of credit cards if compared to the number of debit cards in issue - 3.7 million credit cards vs. 102 million debit cards in circulation in 2010. Russia boasts an even more striking gap, with 127.8 million debit cards vs. 10 million credit cards in issue. A similar picture is apparent elsewhere, with data in 2010 showing India has 227.8 million debit cards against 18 million credit cards, or China where the high number of debit cards - 2.2 billion - makes 229.6 million credit cards pale into insignificance. Even in countries where credit cards still dominate, the card market has experienced an outstanding growth of debit-related payment instruments as in the case of Canada where the number of debit cards witnessed a consistent growth. The pattern is replicated in countries like Indonesia, Australia, Philippines and Brazil.

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Key Highlights

- The European debit card market is twice as large as its credit card counterpart and is growing at more than 10% a year
- With some exceptions, most countries have seen consumers expenditure-related needs increasingly dependent on debit cards
- Recent financial markets volatility concurrent with the credit crunch has led debit cards to be more broadly accepted as a method of payment, reflecting more careful spending-related habits
- Debit card profitability is to a considerable extent linked with cheque accounts


- This report tracks the development of debit cards, paying particular attention to their usage compared to credit cards
- The report reacts to the enactment of the Durbin Amendment in the US by analysing impact of the cut in the interchange fee
- Developments in the US are contrasted with those in the sluggish Eurozone and the markets across Asia
- The impact of interest rates and inflation on debit card usage are also discussed

Reasons to Get this Report

- Increase profits from a debit card offering
- Access the latest statistics on debit card markets in the most developed countries
- Follow the latest on fraud and the cost to banks so far
- Gain an overview of the latest developments in the debit card market

Companies Mentioned in this Report: Visa, Mastercard, Bank of America, Danske Bank, BNP Paribas, Banco Santander Brasil, Ghana International Bank, Standard Chartered Bank India

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