CARPINTERIA, Calif.--(BUSINESS WIRE)--The more than 20-year trend that had debit card purchase volume and purchase transactions gaining share versus credit cards ended in 2012, according to The Nilson Report, a leading payment industry newsletter. In a feature projecting results for U.S. payment cards through 2017, it reported that spending for goods and services on general purpose and private label consumer and commercial credit, debit, and prepaid cards reached $4.633 trillion in 2012, and is projected to reach $7.285 trillion by 2017.
Credit cards accounted for 52.82% of spending in 2012 compared to 47.18% for debit cards. In 2011 credit cards accounted for 52.63% and debit cards accounted for 47.37% of $4.301 trillion in purchase volume. In 2017, 54.72% is projected to be generated from credit cards and 45.28% from debit cards.
“There is a finite amount of money in deposit accounts owned by consumers,” said David Robertson, Publisher of The Nilson Report. “Credit cards are different. Because they can borrow money and pay it back over time, they can spend more on credit than they have in their own accounts.”
Visa debit cards’ market share of 23.83% was highest when comparing purchase volume for all product types in 2012. Visa credit cards ranked second with 21.18%, followed by American Express credit cards (12.70%), MasterCard credit cards (11.53%), and MasterCard debit cards (9.67%).
Visa credit card purchase volume is projected to have a greater share in 2017 at 23.65% than Visa debit cards at 22.98%. American Express’s share is projected to grow to 13.36%. MasterCard’s credit card share is expected to fall to 10.82%, and its debit card share is expected to fall to 9.40%.
About The Nilson Report
The Nilson Report is a highly respected source of global news and analysis of the card and mobile payment industries. The subscription newsletter provides in-depth rankings and statistics on the current status of the industry, as well as company, personnel, and product updates. David Robertson, Publisher of The Nilson Report, and a recognized expert in the field, is a frequent speaker at industry conferences, and is regularly quoted in publications worldwide. Over 18,000 readers in 90 countries value The Nilson Report to track industry trends and market information.