Cardholders continue to choose debit over credit
Consumers are ditching credit cards and opting for debit when making purchases. Since the global financial crisis, more and more shoppers are choosing to use EFTPOS, debit cards and mechanisms including PayPass to make transactions.
Latest Reserve Bank of Australia data shows credit card balances have dropped in the last four out of five months. Smith says Australians are changing their ways, using their own money to make purchases without physically carrying cash.
“This is going to be increasingly the case with smart phones and we think this trend is only going to accelerate,” said a bank analyst. “I wouldn't be confident in 10 years that credit cards will have anything like the share they do today,” he says.
Source: Adelaide Now