The global debit cards market surpassed credit in 2010 to become the most popular card payment type worldwide, with US$5.9 trillion in payment volume in 2012.
Debit, which has been one of the fast risers in payments, alongside pre-paid cards, now accounts for almost half of all card payment volume worldwide.
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account(s) at a financial institution. Some cards have a stored value with which a payment is made, while most relay a message to the cardholder's bank to withdraw funds from a payee's designated bank account.
The card, where accepted, can be used instead of cash when making purchases. In some cases, the primary account number is assigned exclusively for use on the Internet and there is no physical card.
The global economic meltdown and rising unemployment levels have forced consumers across the world to re-evaluate spending patterns, with credit cards segment severely affected by consumers restricting spending.
The enhanced emphasis on limiting expenditure and difficulty in availing credit is contributing to the increased use of debit cards across the world.
Growth within the debit cards market is also attributed to the growing acceptance of small ticket debit transactions among the merchant community. Consumer focus on scaling back expenditure by adopting pay-as-you-go strategy is proving beneficial for the debit card market.
Over the past two years, the global volume of debit card transactions has increased by 15.2%, thus becoming the fastest growing market, with more than 1 in 3 non-cash payments globally made using a debit card.
Asia-Pacific and Europe account for more than two-thirds of the share of total debit cards in use across the world, with the increasing adoption among young consumers and the growing number of online transactions acting as the major factors driving the global debit cards market.
For more information on the global debit cards market, see the latest research: Global Debit Cards Market
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