Milennials Key to Continued Debit Spending Growth
Between 2008 and 2011, debit card spending growth outpaced credit card spending growth by a wide margin. In 2012, however, $7.7M in debit card spending shifted back to credit cards, and debit growth slowed down.
Fortunately for debit card issuers, Millennials favor debit cards over credit cards—and since the oldest members of this generation are only in their early thirties, their peak earning and spending years lie ahead.
- Millennials comprise 15% of the population, but will account for a third of retail spending by 2020.
- Millennials use debit cards more frequently than other age groups.
- Almost half (44%) of Millennials have no desire to use a credit card as a primary payment method.
In order to attracted and retain valuable Millennial customers, financial institutions must put into place debit processing solutions that maximize cardholder satisfaction and streamline operations.