Payment methods continue to constantly expand and users choose to get rid of cash by expanding the use of credit and debit cards.
The advance of the means of payment continues to rise. According to a report from the third quarter of 2024, user preference for using debit cards over cash is growing. At the same time, Transactions in “contactless” wallets are growing.
According to the Payway Index, which analyzes andl consumption behavior in shops that make up its network, transactions with contactless wallets grew 27 times in one year in its network of businesses. Meanwhile, in one year, debit card purchases gained 10 points in volume over cash withdrawals.
In line with a slight rebound in economic activity in some sectorstransactions grew in the area entertainment (12.10%, when comparing the third quarter of this year vs. the second quarter of this year), restaurants (3.12%), Construction (4.40%), Home and Electrical (1.69%) and Clothing ( 0.22%). However, the items that experienced the greatest drop in transactions were Supermarkets (-8.09%), Service Stations (-6.46%) and Pharmacies (-1.04%).
As for the consumption by type of card, A drop of 1.5% was observed (third quarter 2024 vs second quarter 2024) in debit cards, a decrease of 3.8% in credit cards, however the share of Credit Cards grows driven by financing plans longer.
At the same time, there is a strong growth in the use of prepaid cards (12.74%).
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“In the analysis of credit card consumption it is seen that installment plans maintained values from the previous quarter driven by promotions from card issuers and the expansion of the Simple Installment, whose versions of 9 and 12 installments are gaining participation within the program,” the report explained.
Debit cards grow and cash withdrawals fall
Finally, the analysis of the behavior of debit card shows an interannual growth of 10 percentage points in purchases, which shows an increase in electronic payments to the detriment of cash.
Finally, when analyzing the measurement, you can see how cash withdrawals in stores and ATM withdrawals fell, as seen in the following graph:
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Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
