From 2015, an estimated 80% of US debit cards have been converted to chip cards. The study found that fraud loss rates dropped by 28% in 2016 compared to the previous year. In spite of these improvements, fraud continues to be a major issue for financial institutions which lost an estimated USD 900 million to debit card fraud in 2016.
The study’s authors say that a number of measures like conversion to chip debit cards, greater use of tokenization in mobile commerce and continued investment in fraud-mitigation solutions have reduced debit card fraud losses.
Mobile wallets see increased enrolment but low usage
Besides, debit fraud, the study also focuses on mobile wallets, a sector which has seen increased enrolment, but usage still remains low. Acceptance for debit cards on mobile wallets has increased and, in 2017, three out of four issuers support such services. Apple Pay is the most popular mobile wallet in the US and enrolment has increased. However, in spite of this boost, usage of debit cards in mobile wallets account for only about one-quarter of 1% of US debit transactions.
US debit card transactions have increased
Debit card usage grew in 2016, driven by an increase in both the overall card base and transactions per active card. Study findings show that debit transactions have increased by 7% in 2016 and the number of issued debit cards increased by 1%.
The 2017 Debit Issuer Study is the 12th installment in the study series, commissioned by PULSE and conducted by Oliver Wyman, an independent management consulting firm. Fifty financial institutions – including large banks, credit unions and community banks – participated in the study.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now