Consumer Payment Preferences and the Impact of Technology and Regulation: Insights from the Visa Payment Panel Study

23 Pages Posted: 3 Jul 2019 Last revised: 29 Apr 2020

See all articles by Thomas Akana

Thomas Akana

Federal Reserve Banks - Federal Reserve Bank of Philadelphia

Date Written: 2019-07-02

Abstract

The Consumer Finance Institute hosted a workshop in August 2018 featuring Michael Marx, senior director at Visa, Inc., to discuss recent data from the Visa Payment Panel, highlighting the evolution of consumer payment preferences since the Great Recession and the passage of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009. A number of intriguing trends were discussed. Debit card adoption and growth have shown signs of slowing, even as regulatory changes have increased its prevalence recently among younger consumers. Credit card usage continues to grow and has shifted largely to rewards-based products. Payment preferences for younger consumers appear to be influenced by the availability of financial products (driven by social and regulatory influences) as well as the advent of mobile wallets and person-to-person (P2P) technologies. This paper summarizes Marx’s presentation along with additional research.

Keywords: Consumer payments, credit cards, debit cards, P2P, CARD Act

JEL Classification: D14, G28

Suggested Citation

Akana, Thomas, Consumer Payment Preferences and the Impact of Technology and Regulation: Insights from the Visa Payment Panel Study (2019-07-02). FRB of Philadelphia Payment Cards Center Discussion Paper No. 19-1. Available at SSRN: https://ssrn.com/abstract=3413927 or http://dx.doi.org/10.21799/frbp.dp.2019.01

Thomas Akana (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Philadelphia ( email )

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