The growth of Visa payment cards and services, which are offered through 21,000 member banks, contrasts with a decline in paper-based forms of payment. Research agency Global Insight estimates that, globally, cash and check payments have decreased by four and seven percent respectively over the past four years as a percentage of total personal consumption expenditure (PCE). Use of Visa debit products alone has increased by 90 per cent over the same period. While Visas credit cards continue to thrive, the convenience and security of payment cards over cash and checks have also encouraged consumer debit usage. In addition to everyday purchases, such as groceries, petrol, and dining, consumers are increasingly using their Visa debit cards for purchases on the Internet and recurring payments, such as monthly bills and membership fees. For financial institutions, debit cards provide a more efficient mechanism for customers to access funds in their accounts, increasing customer loyalty and retention. The success of debit cards globally has also helped many financial institutions grow their business beyond more traditional credit card products. Offering Visa debit often helps to reach consumers who would not normally qualify for a credit card or can strengthen a customers existing relationship with their bank. For merchants, accepting debit cards results in guaranteed payment and leads to increased sales and lower cash handling costs.
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