Alternative Payment Methods See Surge in Popularity

  • Digital wallet usage increased significantly between 2023 and 2024, according to J.D. Power.
  • 48% of consumers used digital wallets at the point of sale in 2024, up from 36% earlier this year.
  • Debit card usage fell by six percentage points during the same period.
  • J.D. Power predicts a ‘slow deterioration’ in direct debit card use as digital wallets gain popularity.

A recent report from J.D. Power reveals that digital wallet usage has increased significantly between 2023 and 2024, with 48% of consumers using them at the point of sale compared to 36% earlier this year. In contrast, debit card usage fell by six percentage points during the same period. The research firm predicts a ‘slow deterioration’ in direct debit card use as more consumers become aware and comfortable with digital wallets. Debit card issuers must focus on value-added experiences to remain relevant, such as budgeting, security, or rewards.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the increase in digital wallet usage and its implications for debit card issuers. It cites a reputable source (J.D. Power) and includes expert commentary on the potential impact of this trend. However, it could be improved by providing more context on the specific digital wallets mentioned (e.g., Apple Pay or Google Pay).
Noise Level: 3
Noise Justification: The article provides relevant information about the increasing use of digital wallets and its impact on debit cards. It includes insights from an expert and predictions about the future of debit card usage. However, it could benefit from more in-depth analysis or discussion of potential solutions for banks to stay relevant.
Financial Relevance: Yes
Financial Markets Impacted: Banks and payment companies
Financial Rating Justification: The article discusses the increasing use of digital wallets like Apple Pay and Google Pay, which can impact the usage of debit cards and the relationship between banks and their customers. This has implications for financial institutions as they may need to focus on providing additional services to remain relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in this article.

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