PULSE® Study Finds Debit’s Importance to Consumers Continues to Increase
Card-Not-Present Transactions Account for 45% of Debit Spend; 38% of Debit Cards are Loaded into Mobile Wallets
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The 2024 PULSE Debit Issuer Study found more
“The ease and convenience of debit has made it a cornerstone of the retail banking customer experience,” said
The 2024 Debit Issuer Study found the number of debit transactions is growing faster than spend. Active cardholders completed 34.6 transactions per month in 2023, including 30.7 point-of-sale (POS) transactions, 2 account-to-account transfers, and 1.9 ATM transactions. POS use grew at an average annual rate of 4.4% between 2018 and 2023. The average debit ticket size was
Issuers reported a debit penetration rate (percentage of accounts with an associated debit card) of 80.5%, improving by an average 0.6% per year between 2018 and 2023. Debit card active rates (the percentage of debit cards used regularly) declined slightly (-0.2% per year) over the period to 66.3% in 2023.
Card-not-Present (CNP) Gained Share
Mobile and Digital Trends
Mobile devices originated 7% of all debit transactions and 15% of in-store contactless payments in 2023. While all surveyed issuers support provisioning debit cards into digital wallets such as Apple Pay and Google Pay, 38% of debit cards are actually loaded into digital wallets. Apple Pay remains the most popular digital wallet.
Issuers reported an average of three digital wallet transactions per active card per month in 2023, with an average value of
Digital issuance, through which an institution pushes debit card credentials directly to the digital wallet prior to physical card issuance, is the number one new capability issuers plan to introduce. Half of issuers reported plans to add digital instant-issuance capabilities. Benefits of digital issuance include superior convenience, no lag to use, and significant cost savings for the institution.
Debit Faces Shifting Dynamics
In addition to benefiting from debit’s continued growth and evolution, issuers are responding to three macro trends impacting debit:
-
A pending reduction in Regulation II’s interchange cap for covered issuers (those with
$10 billion or more in assets). - Increased competition from both traditional institutions and digital challengers.
- The potential impacts of real-time payments growth.
As issuers respond to these developments, they revealed three key priorities for the remainder of 2024 and into 2025:
- Continue to optimize penetration, active, and usage rates.
- Strengthen their fight against fraud.
- Invest in new digital capabilities, such as instant digital issuance and cardholder visibility into recurring payments.
For more information, visit the PULSE Debit Issuer Study resource center.
About the Study
The 2024 Debit Issuer Study is the 19th installment in the study series, commissioned by PULSE and conducted by
About PULSE
PULSE is a leader in debit payments, global cash access, and account transfers, and we deliver exceptional value, choice, and convenience to clients across the payments ecosystem. We enable reliable and secure digital money movement for a wide variety of debit card programs through our PULSE Network, the Discover® Debit program, an advanced fraud-detection platform, and partner-support services. Our commitment to continuous improvement, innovation, and prioritizing the unique business needs of our clients empowers payment solutions that meet the evolving demands of consumers. PULSE is a Discover (NYSE: DFS) company and part of the Discover Global Network. For more information, visit PulseNetwork.com.
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Anne Uwabor, 832-214-0234
PULSE
anneuwabor@pulsenetwork.com
DPK Public Relations
dan@dpkpr.com
Source: PULSE