The news: Debit cards are winning grocery store transaction volume. 44% of US consumers paid for groceries with a debit card in November 2024, versus 26% for credit cards, per PYMNTS Intelligence survey.
Here are the factors influencing consumer preferences:
Why this matters: Given the top reasons consumers cited for choosing how to pay for groceries, it makes sense that debit beats out credit. Debit offers real-time tracking of how much consumers have in their accounts and can help prevent overspending, making it especially popular among debt-conscious consumers.
And even frequent credit card users gravitate toward debit cards for smaller transactions and everyday purchases like groceries.
Our take: Card issuers likely want to reverse this trend, as credit cards bring in more revenues than debit cards. And growing credit’s share in essential categories like grocery could become a huge opportunity: The average US household spent $6,053 on food at home in 2023, per the Bureau of Labor Statistics.
Credit card issuers can capture more grocery volume by bolstering their rewards in the sector. They can also promote budgeting tools and features to make cardholders more comfortable putting everyday expenses on the cards.
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