Credit card popularity slumps – usage down 10%
Australians prefer using other methods of payment over credit cards, with RBA statistics showing only 41.88% of card transactions involve credit cards, compared to 50.34% five years ago.
Debit scheme cards, which are now widely available from banks and credit unions, are the primary factor for this trend. These segments have grown by over 30% in the last 12 months, compared to just 6.69% for credit cards, Datamonitor’s research has shown.
“Debit scheme cards give consumers the best of both worlds; accessibility of a credit card and, they allow the consumer to use their own money”, says Harry Senlitonga, Datamonitor’s Senior Analyst.
“When it comes to choosing which cards to use, it is clear that Australians choose to use their own money (debit scheme card or eftpos) rather than borrowing (credit card)”, adds Senlitonga, based in Sydney office.
Other negative factors include high credit card fees and the high interest rates charged on credit card debt.
Currently there are over 275 million card transactions per month, in which 116 million are attributed to credit cards. “If this trend continues, credit card marketshare is expected to decline to below 40% for the first time in 2010”, concludes Senlitonga.
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