Advantages of a credit union debit program

In 2023, debit cards were the top payment method for 57% of consumers according to Forbes. The popularity of debit cards presents an opportunity for credit unions to build member loyalty and improve their revenue growth by either offering a debit program or finding ways to enhance their current programs to better fit member needs and expectations.

Who is using debit cards and why?

Many budget-conscious consumers, particularly those with low incomes, developed a habit of using debit cards for everyday purchases during the pandemic as they shopped more online or took advantage of contactless payment technologies in-store (S&P Global). Younger demographics are also using debit cards more, with Gen Z showing a 25% increase in debit activity from 2021-2022 (S&P Global).

Expectations and needs

With rising costs of living, consumers need a budget-friendly payment method that offers a convenient, secure, and seamless shopping experience. Faster than checks or cash, debit cards can be conveniently used in-store or easily added to digital wallets without the worry of incurring interest rates. Low fees, rewards, and checking accounts that earn interest can make debit cards even more economical for members.

 

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