Recently, we reported on the significant competitive developments that have occurred in the checking/debit arena, along with a follow-up commentary on the importance of checking. To expand on that, we want to share the role that debit plays as a connected piece in the member wallet.
While there are many studies frequently occurring on payment usage, the best may come from the Federal Reserve, which include the Diary of Consumer Payment Choice1. The study is conducted annually, with significant controls and without bias that some studies may include. For payment junkies, and for credit unions wanting insight into how consumers spend, the study is a quick and informative read.
According to the 2018 Study, cash remains the most frequently used payment instrument at 30% of transactions. There has been a slight decline over the past two years, but, while declining, it appears cash will be around for a while. Behind cash, debit is the most used form of payment at 27% of transactions, followed by credit at 21%. Note that cards are almost 50% of spend! An effective card strategy is critical for credit unions.
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