Debit overtakes credit card spending

Purchases made with personal credit cards have dropped from 54.3 per cent of the value of all purchases made with payments cards in the year to May 2008 to 49.5 per cent in the year to May 2011.

This shift may be accelerating, with the growth in purchases on all credit card accounts rising by only two per cent over the last year, according to the monthly analysis on payment card trends compiled by MWE Consulting.

Growth in spending on debit cards is currently at 18 per cent over one year.

Source: Banking Day