Visa: debit cards over cash up 18%
Debit card usage in South Africa has risen 18% a year for the last three years as more cardholders move to replace cash with debit cards.
This is according to Herman Botes, director of consumer debit at Visa for Sub-Saharan Africa.
“This growth is consistent with debit growth in other industrialised markets. Given that South African banks are offering debit cardholders most of the same loyalty and other benefits associated with credit cards, we expect to see this growth trend to continue,” Botes said.
Botes noted further that the fastest growing retail segment for debit card purchases over the past year, to June 2012, was fuel, with an increase of 150%.
Debit card spending on clothing, food and beverages has increased by 19% over the past year, and there has been significant growth in online debit card purchases, including that of airline tickets, books and music, according to Visa.
Debit cards being used internationally has grown by 13%.
Still a way to go
According to Botes, many people still don’t understand the benefits of using debit cards over cash – citing various promtional offers, convenience and security benefits associated with debit card transactions.
South African banks have decreased – and even in some cases eliminated – per-transaction cardholder fees for using debit cards, Botes said, resulting in fewer ATM withdrawals and more debit purchase transactions.
“This benefits consumers as it translates into higher positive account balances earning interest in productive bank accounts, and enhanced safety and security from not carrying as much cash,” he finished.
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