Debit Card Usage Increasing Despite Recent Data Breaches
The 2014 Debit Issuer Study from PULSE showed a consistent growth in consumer and business debit card use in 2013, despite the data breaches that have taken place in the past year.
14% of all debit cards were exposed in data breaches in 2013, compared to just 5% in 2012. But consumers continue to move to electronic payments. There are now an average 20.1 electronic transactions per month per active account, up from 19.4 a year earlier.
Financial institutions are looking to improve their security standards. 86% of financial institutions said they plan to start issuing EMV cards within the next two years, which is a significant increase from 50% in 2012.
After the Target breach, 84% of financial institutions reissued all the debit cards in their systems that had been exposed. Typically, only 29% will reissue all cards after a data breach.
“In the wake of several high-profile data breaches, the industry has come together to look for solutions to increase security and advance EMV implementation,” said Steve Sievert, executive vice president of marketing and communications for PULSE. “While PIN debit remains the most secure payment method in the market, this year’s study confirms the industry is reaching a tipping point toward EMV. The majority of financial institutions plan to issue EMV debit cards starting in 2015.”