This past June saw usage growth across almost all payment methods, with prepaid cards taking the top spot beating out credit and debit cards.
A report commissioned by First Data called “First Data SpendTrend analysis for May 31–June 30, 2014” compared figures from June 1–July 1, 2013 and showed prepaid cards triumphing this past June over its other plastic competitors with a 4% year-over-year growth spurt. Credit cards nearly tied with prepaid cards, being nudged out by just 0.1% with a total 3.9% year-over-year growth rate.
Signature based debit cards took a hit with the global move to pin based secure cards with 2% growth. The shift did favor the pin based cards which saw a year-over-year growth rate of 3.3%.
All in all spending growth was slower in June compared to the month before it. With the slump in growth figures were still positive with a year-over-year spending growth of 0.9%.
“This month’s trends showed some slowing in spending growth but overall, spending remains healthy, reflecting the recovering economy and consumer willingness to spend compared to the same time last year. An increase in credit usage reflects steady growth in credit lending, improved consumer credit quality and a growing consumer confidence in their personal finances,” said Krish Mantripragada, senior vice president of information and analytics solutions at First Data.
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Prepaid card have grown in popularity recently, primarily in the online Ecommerce space. While not being linked directly to a bank account it proves to be safer than standard payment cards in case of fraud. Virtual prepaid cards rose to 10% recently showing its growing popularity.
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