Credit Card Micropayments on the Rise, Especially Among the Young
Visa announced last week a 17% rise in card usage for purchases of under $25, and a Visa survey suggested those numbers would rise, especially among younger consumers. Visa reported that its volume on purchases less than $25 totaled $27.3 billion in the first six months of the year.
Visa’s new survey found that 55% of the 1000+ respondents use payments cards for small ticket items less than $25, with convenience and ease of use being their leading reasons for doing so. The survey suggests that an increasing number of these purchases are being made with debit cards versus credit cards. For consumers between the ages of 18 and 25, 44 percent of these purchases were made with debit cards, versus 33 percent of such purchases by shoppers over 45.
In addition, the survey found that 70 percent of consumers ages 18-25 are willing to use payment cards for purchases less than $2, compared to only 26 percent of consumers ages 45 and older. Visa is aggressively pushing the use of credit and debit cards for small purchases. Key components of this strategy include waiving the signature requirement for transactions under $25 and cutting the credit and debit interchange rates that merchants pay for transactions of $15 or less.
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