{"id":2397,"date":"2020-10-27T05:30:48","date_gmt":"2020-10-27T05:30:48","guid":{"rendered":"https:\/\/businessner.com\/?p=2397"},"modified":"2020-10-26T06:26:17","modified_gmt":"2020-10-26T06:26:17","slug":"a-shift-towards-debit-card-culture-slashing-the-credit-card-spending","status":"publish","type":"post","link":"https:\/\/businessner.com\/a-shift-towards-debit-card-culture-slashing-the-credit-card-spending\/","title":{"rendered":"A Shift Towards Debit Card Culture Slashing the Credit Card Spending"},"content":{"rendered":"

Coronavirus pandemic forced U.S consumers<\/a> to shift towards a debit card culture reducing credit card spending significantly.<\/p>\n

The story of credit cards started in the 1950s when Diners Club introduced a new payment card. But the less popular debit card started its journey 20 years later.<\/p>\n

As the e-commerce boom is taking place during the health crisis the credit card spending has fallen thanks to the government stimulus checks. A study by Forbes shows that consumers rejected credit cards and the debit card spending rose at the same time in 2020.<\/p>\n

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Source: Forbes<\/figcaption><\/figure>\n

The 2nd<\/sup> quarter of 2020 had a significant decrease in credit card spending ever since the travel and luxury sectors came under pandemic restrictions to reduce the virus spread.<\/p>\n

According to the data, Covid-19 lockdowns around the world created a fear among the credit card users and they chose to use debit cards only to survive in this difficult situation.<\/p>\n

The consumer mindset has now moved towards budget items that can be purchased online using a debit card. Visa Inc<\/a>, the top global credit card service provider, found credit card transactions going down 24% from the last year.<\/p>\n

Also Read:<\/strong>\u00a0Samsung Group Chairman Lee Kun-hee Dies at 78<\/a><\/p>\n

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The rise of debit card and credit card significantly reduced cash transactions; File Photo<\/figcaption><\/figure>\n

However, research by MoffettNathanson suggests that debit cards went up by 10%. Many fintech companies are now offering debit cards as a medium for consumer spending.<\/p>\n

The studies concluded that a $1,200 government-stimulus check was the main reason for such a shift in behavior. Many companies like Chime used stimulus checks as an advantage.<\/p>\n

Once the San-Francisco based company saw an opportunity in mid-April they started to utilize it.<\/p>\n

\n

\u201cFollowing the stimulus advance, we had the largest day for new enrollments in the history of the company\u201d<\/p>\n

-Chime CEO Britt.<\/p>\n<\/blockquote>\n

The unemployment rate, on the other hand, had an impact on the shift towards the debit card culture. As the unemployment rates peaked at 8.4% many consumers had to give up credit cards for a less expensive payment method like a debit card.<\/p>\n

Chime now relies entirely on a business model related to the customers swiping their debit cards. It is making a fortune not by interests but by debit card swipes.<\/p>\n

\n

Also Read:<\/strong>\u00a0Britain Signs First Post-Brexit Trade Agreement with Japan<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Coronavirus pandemic forced U.S consumers to shift towards a debit card culture reducing credit card spending significantly. The story of credit cards started in the 1950s when Diners Club introduced a new payment card. But the less popular debit card started its journey 20 years later. As the e-commerce boom is taking place during the […]<\/p>\n","protected":false},"author":3,"featured_media":2400,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"Coronavirus Pandemic Shifts U.S Consumers to Debit Card Culture, Cutting Credit Card Spending","_seopress_titles_desc":"Coronavirus pandemic forced U.S consumers to shift towards a debit card culture reducing the credit card spending significantly","_seopress_robots_index":"","tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[40],"tags":[302,818,819,304,303],"_links":{"self":[{"href":"https:\/\/businessner.com\/wp-json\/wp\/v2\/posts\/2397"}],"collection":[{"href":"https:\/\/businessner.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businessner.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businessner.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/businessner.com\/wp-json\/wp\/v2\/comments?post=2397"}],"version-history":[{"count":3,"href":"https:\/\/businessner.com\/wp-json\/wp\/v2\/posts\/2397\/revisions"}],"predecessor-version":[{"id":2403,"href":"https:\/\/businessner.com\/wp-json\/wp\/v2\/posts\/2397\/revisions\/2403"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businessner.com\/wp-json\/wp\/v2\/media\/2400"}],"wp:attachment":[{"href":"https:\/\/businessner.com\/wp-json\/wp\/v2\/media?parent=2397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businessner.com\/wp-json\/wp\/v2\/categories?post=2397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businessner.com\/wp-json\/wp\/v2\/tags?post=2397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}