I spent most of this past week with CEOs and CTOs from some of the largest electronic payment providers in the world. I asked them what they’re seeing with transactions in the midst of the financial crisis.
Nearly all of them are seeing a dramatic move away from credit cards to debit cards. This comes as no surprise, as it’s been predicted for some time. But these providers actually have their hands on the data before it’s published, and are seeing a migration to debit in a big way.
I asked them if they’ve seen a migration to cash. This seems reasonable given credit is tightening and consumers are struggling with debt. Some retailers even seem to be pushing for this, for example by providing a lower rate on gas purchased with cash.
To date, these payment providers claim they are not seeing a move to cash. They essentially have access to real-time data, so they are in a better position than anyone else to see this “non-trend” to cash. Time will tell. In the meantime, one thing is for sure – you can get some great deals if you have any last minute Christmas shopping left to do.
The post Migration to Debit, but Maybe Not Cash appeared first on Kristin Moyer.
