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Card Payment Trends

Are you offering your customers the RIGHT payment options to GROW your business?

As a business owner, it is obviously good business practice to offer your customers multiple options to pay for your goods and services. There are many published statistics that directly correlate retail sales increases with the number of payment options available to consumers. While each of your customers may have personal reasons for choosing their payment options, there is broader statistical data that will help you as a business owner, understand which payment options can maximize revenuesfrom the products you sell.

Payment option selection is driven by transaction dollar
amount & consumer demographic

  • Consumers spend 241% more on a credit card transaction vs. debit card transaction, $94.00 VS. $39.00*
  • The number of credit card transactions increased by 4.2 billion at a 6.8% CAGR over a 3 year period
  • Credit cards represent 32.2% of all card transactions but 53.5% of the dollars spent  

Is your average transaction over $40.00

Based on average U.S. debit transaction of $39.00, assume 11% of prospective customers do not purchase because they do not have the cash available.

If 20% of your customers use credit cards?

Assume a $35 increase in transaction size from 20% of your customers

Financial Opportunity
  • - 100 customers daily x 11% (no sale) = 11
  • - 11 customers x $60.00 = $660.00
  • - $19,800.00 monthly unrealized sales
Financial Opportunity
  • - 100 customers daily 20% = 20
  • - 20 customers x $35.00 = $700.00
  • - $21,000.00 monthly, incremental spend

    What payment options do your customers prefer?

  • Evidence for correlation, if not causation, can be found in a Fed study about how people pay.

Age-related credit card usage:

  • Under 25 years: 56%
  • 25-34: 68%
  • 35-44: 81%
  • 45-54: 81%
  • 55-64: 84%
  • 65 or over: 95%

Education-related credit card usage:

  • Education: high school or less 66%; post-graduate school 98%

Income-related credit card usage:

  • Income: under $25,000 p.a. 48%; over $100,000 96%

Net worth-related credit card usage:

  • Net worth:under $50,000 59%; over $500,000 92%

Race-related credit card usage:

  • Asian: 100%
  • White: 83%
  • Latino: 82%
  • American Indian: 69%
  • Other: 55%
  • Black: 50%

Sex-related credit card usage:

  • Men 81%
  • Women 75%