Aussies love debit cards

Purchases made with personal credit cards are down to 50.1 per cent of all purchases made with payment cards, MWE Consulting notes in its monthly analysis of the RBA data.

This share seems likely to slip further given the secular shift to payment by debit card. MWE put the market share of debit cards at February 2011 at 38.2 per cent. The charge card share (which is overwhelmingly American Express) is 11.6 per cent.

While making payments with credit cards is, relatively speaking, less popular than it was, making use of available credit limits has become more popular of late.

The revolve rate – the ratio of credit card customers with balances accruing interest as a percentage of credit card advance – is now at an all time high of 73.3 per cent.

Source: Banking Day