Debit Cards and P2P Payments are Important to the Payment Ecosystem

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New report from Mercator Advisory Group 2019 North American PaymentsInsights survey finds Canadian consumers’ reliance of debit cards and P2P Payments for specific purposes.

One of the exhibits in this report

We have explored the use of debit cards and P2P payments in Canada. Both play an integral role in the ever-changing payments ecosystem. For many, debit is an alternative to credit. P2P is currently a young person’s payment method, but we expect that to change over time.

Mercator Advisory Group’s most recent consumer survey report, Debit Cards & P2P Payments– Valuable Solutions, from the bi-annual North American PaymentsInsights series, reveals that the debit cards and P2P payments both are core components of the payment ecosphere.

The use of debit cards is highest among older adults, females and those with household incomes below $50,000.

For consumers with household incomes below $50,000, debit cards are the most preferred method for paying in stores. This group is also the reports the highest preference for cash.

The primary reasons consumers cite for not using a debit card to shop online are the belief that credit cards are safer online (39%) and a fear that they don’t get rewards (36%).

P2P Service use varied considerably by age. Among those 18 to 24 years of age, 82% have used P2P payments compared to 46% of those 65 years of age or older. PayPal dominates the P2P payments market.

Consumers make an average of eight P2P transactions per year. Men make more P2P payments than women (9.3 vs. 5.6). Further, with regard to income, the frequency of transactions is highest among those with household incomes over $100,000 (10.2).

Younger adults are more likely to report fraud issues with P2P services (lost money, paying for something that wasn’t delivered, fraudulent charges or, bank account compromise) than those 35 years of age or older.

Debit Cards and P2P Payments: Solid Partners, the latest report from Mercator Advisory Group’s Primary Data Service, is based on a sample of 3,002 U.S. adults surveyed in the annual online Payments survey of Mercator’s North American PaymentsInsights series, conducted in June 2019.

The study highlights consumers’ use of debit cards, relative to other payment types, the use of credit card controls, reward programs, new account opening. Additionally, the survey covers P2P payment use, key brand usage, reason for using and not using P2P payments and P2P fraud.

“This year is the first time we have explored the use of debit cards and P2P payments in Canada. Both play an integral role in the ever-changing payments ecosystem. For many, debit is an alternative to credit. P2P is currently a young person’s payment method, but we expect that to change over time,” stated the author of the report, Peter Reville, director of Primary Data Services at Mercator Advisory Group, which includes the North American PaymentsInsights series.

Highlights of this report include:

  • Current payment card usage in the U.S.
  • The use of payment cards online and off line
  • The incidence of debit card fraud
  • Debit card rewards
  • How consumers use credit card controls
  • P2P Payment usage
  • P2P Payment providers
  • The types of P2P Payments used
  • P2P Payment fraud

This report in slide form is 52 pages long.

Companies mentioned in the survey results shown include: Apple Pay Cash, Facebook Messenger, Google Wallet, MoneyGram, PayPal, PopMoney, Square Cash, Venmo, Western Union WuPay, and Zelle.

Members of Mercator Advisory Group’s North American PaymentsInsights Survey Series Service (formerly CustomerMonitor Survey Series Service) have access to this report as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits.

Please visit us online at http://www.mercatoradvisorygroup.com.

For more information and media inquiries, please call Mercator Advisory Group's main line: 1-781-419-1700 or send email to media@mercatoradvisorgroup.com.

For free industry news, opinions, research, company information, and more, visit us at http://www.PaymentsJournal.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Karen Yetter
@MercatorAdvisor
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