Credit cards losing market share to debit and charge cards
Debit cards are now used for 31.7 per cent of purchases, up from 30.7 per cent one year ago and up from 30.4 per cent two years ago. Conversely, credit cards account for 56.3 per cent of spending (down by 1.1 percentage points over two years) while spending on charge cards accounts for 12.0 per cent of spending (down by 0.2 percentage points). The combined market share of all banks in the credit card segment fell from 84.8 per cent in January 2006 to 82.9 per cent in April 2006. American Express and to a lesser extent Diners Club seem to be winning customers with sweetened and heavily promoted rewards schemes. Among the banks, Bank of Western Australia and National Australia Bank are the only banks making current gains in credit card market share, based on Australian Prudential Regulation Authority data.