Companies and Markets
Call us on +44 (0) 203 086 8600
Market Research A to Z | Company Profiles A to Z | RegisterRegister | Contact UsContact Us | Shopping Basket Shopping Basket
+44 (0) 203 086 8600 Call us on

US debit card industry dominated by Bank of America as the leading issuer

Industry Sector

Business Services

Published

19 December 2012

Author

Alex De Angelis

Type of News

Market

Over the past decade, the debit card has emerged from the shadow of its older sibling, the credit card. The US debit card industry is a multi-billion dollar engine that helps drive bank profits and point-of purchase consumer sales - but is also beginning to redefine traditional payment options in the business and government sectors. The debit card has arrived and is here to stay.

A debit card is a plastic card that provides the cardholder electronic access to his or her bank account(s) at a financial institution. Some cards have a stored value with which a payment is made, while most relay a message to the cardholder's bank to withdraw funds from a payee's designated bank account.

The card, where accepted, can be used instead of cash when making purchases. In some cases, the primary account number is assigned exclusively for use on the Internet and there is no physical card.

Debit cards also provide an option for an amount of cash back at point-of-sale terminals. The cash back option has allowed consumers to avoid fees that would be incurred at ATMs that are in different networks.Bank of America

The leading issuer by debit card payment value in 2011 remained Bank of America, with 17% of the market, down slightly from 2010. The debit market marginally reversed its path of consolidation in 2011, with the four largest issuers representing under 41% of all debit payment value, versus just over 41% in 2010, as actions undertaken by the largest banks in response to interchange regulation drove some consumers to smaller competitors and credit unions.

In terms of total cards in circulation, Wells Fargo remained the leading issuer for the second year, and Bank of America stayed at second.

Despite regulatory hurdles and an uncertain economic environment, the US debit card industry is expected to continue to grow because of the financial management inherent in this type of card compared with cash. In absolute terms, the value of debit card payments is expected to increase by US$536 billion between 2012 and 2017.

For more information on the US debit card industry, see the latest research: US Debit Card Industry

Follow us on Twitter @CandMResearch

Visitor Comments

All posts are pre-moderated and must obey the house rules.

Change Currency

GBP
USD

Change Currency

GBP
USD

Use our research skills: Get free support

Free Research Support: Let us do the work for you and find information from public and private sources of information. Contact us now and we can save you time and money.......Free Research Support

December Discounted Prices: Contact us to ask about our special discounts available in December

For the last month in 2014 we are offering discounted prices on a selection of new reports. Please contact us on 00 44 (0) 203 0868600 or via email (click here to email) to ask about prices and special discounts.

Available during December and the run-up to Christmas; Discounted prices on a selection of our reports.

Find all the research at the best prices. Great promotions being offered during December!

We are offering our clients substantial savings on the best research available during December. Please contact us either via emailor by calling our team to discuss your specific research needs on Tel: 00 44 (0) 203 0868600. We look forward to being able to find you the research you require at good prices.

Accessibility
Close

Contrast settings

Text size settings