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Data Snack: Credit and debit cards are king; BNPL’s ‘dangerous illusion’ is fueling overspending

  • Credit and debit cards still dominate as payment methods, with 60% of consumers preferring either of the two.
  • BNPL's ease of use leads to consumers feeling detached from their expenses, making financial education all the more important today.

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Data Snack: Credit and debit cards are king; BNPL’s ‘dangerous illusion’ is fueling overspending

Recent J.D. Power research surveyed American consumers to learn which digital transaction methods are more popular, and how consumers are using the different options they have today. The study found that generally, digital transactions are gaining traction across age groups. While credit and debit cards are front runners in overall utilization, newer tools like BNPL, mobile wallets, and P2P payments are earning high customer satisfaction scores, especially among younger consumers.

Credit and debit cards are king

Credit and debit cards lead as consumers’ preferred method of payment by a mile. Across age groups, debit cards were found to be the most popular payment vehicle, with 32% of respondents saying they used them for payments over the last 3 months. In the same period, 28% reported using credit cards to complete their payments. That was followed by a significant drop in usage, with automated withdrawals reportedly used by 12%, and cash used by 11%. Even with all the hype around BNPL, only 1% of the respondents reported using it. For comparison, around just as many used cryptocurrencies to make purchases.


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