Debit is the most popular payment method both in the United States and globally. Influenced by the growing popularity of digital payments and evolving consumer preferences, it is projected that debit transactions will remain king when it comes to consumer payments. As a result, modernizing payments is now table stakes. Solutions with reusable technology and the ability to support multiple channels are key to successful modernization.  

To learn more about why modernizing debit payments is crucial in the banking and retail sectors, PaymentsJournal sat down with Steve Kremer, Director of Sales – Payments at Diebold Nixdorf, and Sarah Grotta, Director of Debit and Alternative Products Advisory Service at Mercator Advisory Group. 

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The state of debit card usage 

The dollar amount spent on Visa and Mastercard debit cards increased by 14% in the United States in 2020, reaching over $900 billion. In comparison, credit card volume dipped when the pandemic struck. This is apparent in the chart below, which was provided by Mercator Advisory Group:  

“Debit continues to make a very strong showing. From a consumer convenience standpoint, we can see the advantages of using debit over other payment rails. And then finally for the retailer, there are real economic advantages of debit-based processing solutions,” Kremer added.  

The growing popularity of debit is not unique to the United States. The global debit card market is anticipated to grow from $91.37 billion in 2020 to $94.08 billion in 2021. India boasts 900 million debit cards but just 55 million credit cards. In the Asia Pacific (APAC) region, bank accounts lead the race with transactions occurring using mobile apps and digital wallets connected to debit cards.  

What is unique about the United States is the popularity of credit cards. “I think the U.S. is somewhat unique in its history, its legacy of being very credit card focused. That isn’t necessarily the case around the world,” said Grotta.  

Some of the debit growth seen in 2020 can undoubtedly be attributed to the COVID-19 pandemic. “Did the impact of the pandemic and stimulus money have some impact on the increase of debit usage in 2020? I think it did. But I think that the pandemic also accelerated the consumer migration to digital payment c...