Transaction account debit cards are the way to pay

The Reserve Bank’s PSB said the number of non-cash retail payments rose by around eight per cent in 2012/13. The strongest growth was in the use of debit cards, which was up 14.4 per cent by number and 11.1 per cent by value.

Debit now makes up 39.9 per cent of the number of all non-cash retail payments, compared with 22.9 per cent for credit cards, 20.9 per cent for direct credits, 9.5 per cent for direct debits, 4.2 per cent for Bpay and 2.6 per cent for cheques.

Use of BPay also grew strongly – up 5.3 per cent by number and 10.5 per cent by value. In 2012/13, the value of payments processed through BPay exceeded the value of credit and charge card payments for the first time.

Online payments now make up 18 per cent of non-cash retail payments.

Source: Banking Day