Aussie spending habits are changing with new research showing we’re more likely to pay with a debit card instead of a credit card.
An Australian Bankers’ Association analysis of RBA data shows debit card transaction rates have been solidly growing at 12 per cent or more for the past 10 years.
In fact, debit card usage continues to outstrip all other cards, with a whopping 5.6 billion transactions over the year ending November 2017.
In real numbers this means we’re performing 4.1 billion more debit card transactions than we did 10 years ago.
ABA Chief Economist Tony Pearson said this is really good news as it shows more and more that we’re making a conscious choice about how to pay for something, and frequently this involves using our own money.
“Things haven’t always been this way, in 2006 debit and credit cards were used equally, now debit cards outstrip credit card use by two to one. That’s quite a change in just 12 years,” he said.
“And according to the data, ATM use is down by 6 per cent, but this doesn’t mean we’re not getting cash out. It actually points to the fact that the words, ‘any cash out?’ are uttered regularly where ever we shop.
“I think that these numbers clearly demonstrate that consumers have so much more choice when it comes to how they pay, debit card, credit card, eftpos or cash.
“Choice is always a win for the consumer.”