Wednesday, October 23, 2013
INSIDE THE U.S. CREDIT/DEBIT DYNAMIC: EXPLORING SHIFTS IN CONSUMER SPENDING AND SAVING BEHAVIOR
The United States continues to witness sustained growth in payment card volumes despite a stop-and-start recovery. This growth is due to smarter spending and saving by consumers, evolving strategies on the part of financial institutions and merchants, and continued migration to electronic media at the expense of cash and checks. The latest research on consumer spending and saving trends shows that, while there was some shift from debit to credit card usage at the height of the recession, the pendulum began to swing back towards increased debit usage in 2012. Viewing consumers by segments is essential to understanding this behavior.
MasterCard will discuss its latest research on consumersí shifting behavior around spending, and saving and how itís affecting the dynamic between credit and debit. Only by positioning their profitability measurement, product design, and marketing and segmentation in ways that capture these changes in consumer behavior can institutions and merchants remain profitable in the new reality.