Western Europe sees strong debit-card growth
The number of payment cards in Western Europe increased by 9 percent from 2004 to 2006, hitting a total of 787 million, according to research firm Retail Banking Research Ltd. Each adult in the region now has more than two payment cards. According to RBR, the United Kingdom remains the region’s largest market, despite a fall in its card numbers as a result of credit-card issuers closing dormant accounts.
Western Europe’s largest card markets in 2006.Most countires have more debit than credit cards. However, in Austria, Belgium, Germany, the Netherlands and Turkey debit cards account for more than three-fifths of the market. Issuance of prepaid cards, included in the debit sector, remains under‑developed, although such cards are expected to gain in importance over the next few years as banks target people who do not hold bank accounts, and as companies use them to control employee expenditure.Debit cards are the dominant form of card payment based on volumes, accounting for 63 percent of transactions despite that the fact they account for only 52 percent of cards. In contrast, credit cards payment volumes stand at only 17 percent, compared with 33 percent of cards in circulation.
Note EU-Digest: Consumers in Europe should be warned like smokers are about their health that credit cards are dangerous to their financial well-being. All they have to do is look at the US where personal credit card debt now has reached close to euro 545b (US $ 800b).
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