In 2021, digital payment card transactions—credit card, debit card, and prepaid card—will total $67.74 billion in Canada.

As consumers have gotten more comfortable using debit cards online, US digital debit card spending has outpaced that of credit cards. Transaction value will fall in 2021, but we expect growth to return in 2022.

Credit or debit? US credit card owners are torn

The retail giant is making its prepaid debit card—offered with Green Dot Bank—available as a demand deposit account. That and its big store footprint could pose a threat to smaller banks in rural areas.

Cash-back credit cards could make themselves more appealing to prospective customers with a few key features.

Blocking contactless debit card payments. Fraud loss from US debit card-present consumer payments will almost double this year, per our forecast. Given that the bulk of card-issuing banks have rolled out contactless debit cards, it’s hard to steer clear of the threat. No FI in the study offered the option of blocking tap-and-go payments. Managing third parties’ data access.

Receiving a virtual debit card for immediate use can boost card-not-present spending. In 2020, growth in US digital debit card transaction value more than doubled that of digital credit cards (72.9% versus 38.0%), per our forecasts.

“You can come to meet an advisor outside of the grocery store, and five minutes later, you can walk away from there, with the bank [information] in your hand, and a Visa debit card in your hand, and you can usually add money and send it to another country directly in the store,” Larrson told the publication.

The digital play’s incentives for new customers included 1% cashback on certain debit-card transactions and round-ups on debit-card purchases. The banking giant has also signaled that it will be patient with the UK bank’s performance, and the UK could serve as a sandbox for operating in the US and across Europe. Buying a UK fintech, bulking up in wealth management.

As customers limit credit card use to avoid debt, here’s how credit issuers can regain volume for the rest of the season—especially in-store.

Gen Z’s use of cards and cash is declining rapidly. Debit cards are currently the most popular in-person payment type for Gen Z, mainly because many are credit averse or too young to qualify for and use credit. However, Gen Zers anticipate reducing their use of debit cards (from 35% now to 26% in the future) and credit cards (from 16% now to 14% in the future) (Logica Research, June 2021).

The ability to order a replacement card in the app streamlines a fundamental task. Debit cards are the UK’s most frequently used payment method, accounting for 44% of all payments in 2020, per UK Finance. FIs must therefore make it painless for customers to replace lost or stolen cards.

Ordering a replacement card in-app removes friction from a necessary account function. Debit cards accounted for 44% of all UK payments in 2020, making it the most frequently used transaction method, per UK Finance.