The Other Big Trend I’d Really Highlight Is The Move From Cash to Debit
That may be the most germane quote — the “takeaway” if you will — from an interview that Nitin Sumangali did regarding MasterCard Global Insights’ recent white paper on consumer spending habits and whether they’re still in a “recession mindset.” for move from cash to debit.
The study used publicly available data since the recession hit its presumed bottom in 2008, and has showed that since then — even though consumers do have altered ways of spending and shopping now — overall prepaid card volume grew by $129 billion, on the U.S. credit card side, that volume was up by $172 billion by last year
In his role as an analyst for Global Insights, Sumangali conveyed to industry journal Pymnts.com that the data suggests a significant improvement in consumers’ financial confidence.
But the more interesting trend was the move from cash into debit cards, where, apparently, it’s staying. According to Sumangali: “One of the things that we’re seeing from the shift away from cash and toward debit and other forms of electronic payments. In the wake of the crisis, consumers began to view themselves as a small business.
“We see that the benefits of electronic payments in terms of displacing cash really stems from this idea that it’s a better idea for consumers to manage their spending in a holistic way across all products, and that includes borrowing and spending and improving their financial health.”
“According to our research,” Sumangali added, “about $90 billion in spending moved from cash to debit from 2008 to 2012.”
Be Prepared to Accept All Forms of Plastic
This insight goes beyond the global perspective; it directly applies to your local business and customer base! Reach out to your AVPS representative now. Moreover, consider the possibility of introducing your own prepaid and gift cards!