Value of Annual U.S. Debit Card Transactions to Reach $2 Trillion by 2010

New York, May 6, 2006 — With nearly half (48.2%) of U.S. adults carrying a debit card, it’s not surprising that debit is quickly catching up to credit cards and cash as a primary means of point-of-service and online transactions. According to Debit Cards in the U.S., a new report from market research publisher Packaged Facts, the total transaction volume in the U.S. debit card market reached a phenomenal $907 billion in 2005, up 18.6% from 2004.

Packaged Facts projects that debit cards will continue to enjoy strong growth, with annual debit transactions exceeding $2 trillion by 2010. Increased penetration among young consumers as well as growing use of recurrent bill payments and online transactions are helping debit cards considerably close the gap on credit card transactions. Indeed, in Q1 2005, Visa check card use for online purchases accounted for 52% of all online Visa payments, surpassing online Visa credit card transactions for the first time in history.

Behind the scenes, however, all that glitters isn’t necessarily gold, as merchants, card networks, and banks have battled in the courts over interchange rates, processing fees, and other issues for over ten years. Such internal warring, however, hasn’t slowed down card issuers’ innovative new plans to increase debit volume.

“Rewards, already a proven seller with credit cards, should become the next big frontier for debit cards,” notes Don Montuori, the publisher of Packaged Facts. “Prepaid debit is also poised to become popular by providing the estimated 48 million unbanked consumers with a convenient means of payment beyond cash.”

Debit Cards in the U.S., now in its 2nd Edition, examines new product trends, offers competitive profiles of industry leaders, provides a behind-the-scenes look into the financial framework facilitating debit card usage, explores opportunities for further market penetration, and looks at consumer trends and behaviors surrounding debit card transactions. Priced at $3,250, this report can be purchased directly from Packaged Facts by clicking: http://www.packagedfacts.com/pub/1187713.html. It is also available at MarketResearch.com.

About Packaged Facts
Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer industries, including consumer goods and retailing, foods and beverages, and demographics. For more information visit www.PackagedFacts.com, or contact Tom Ehart at 240-747-3014, or tehart@marketresearch.com.