70% of Issuers Plan to Offer Contactless Debit Cards in 2020
According to the 2019 Debit Issuer Study from PULSE, 70% of issuers plan to offer contactless debit cards in 2020. Another 10% of issuers said they already offer contactless cards, and the remaining 20% have no plans for contactless payments.
The study projects that contactless cards will represent 60% of the debit card market by the end of 2021. This is significantly higher than previous projections. For instance, a 2017 study from Juniper Research predicted contactless payments would make up 34% of all transactions in 2022.
There were approximately 68.5 billion debit card transactions last year, up 6.7% over last year. This growth was largely fueled by an increase in card-not-present (CNP) transactions, which increased 24% compared to year-ago levels.
With the prevalence of chip cards in America, fraudsters have shifted their focus to CNP transactions. Shortly after the switch to EMV cards, Visa found an increase in card-not-present fraud for all retail categories, except footwear. CNP transactions accounted for 69% of fraud claims in 2018, according to PULSE.
Debit issuers saw a decrease in average net fraud loss per debit transaction for the third year in a row, dropping from 1.3 cents to 1.1 cents year-over-year.