First Data Survey Reveals New Insights Into Consumer Payment Tendencies At Point of Sale

New data has revealed six distinct consumer payment segments, according to a survey released by First Data's STAR® Network. The 2006/2007 Consumer Payments Usage and Segmentation Study includes a segmentation analysis of specific market groups based on their payment tendencies at the point of sale. The six segments found in the research include the signature debit, PIN debit, cash/PIN debit, cash, check and credit card segments. The segments — determined by an analysis of payment behavior, demographics, attitudinal characteristics, payment preference and value-based characteristics — provide a new way to look at the point of sale payments landscape.

The 2006/2007 survey data also shows that...

• Over the past five years, consumers' average PIN-secured debit point of sale activity has grown from nine transactions per month to 11.
• The average total number of signature debit point of sale transactions made monthly has increased 38 percent in the last year, from 13 to 18 transactions per month.
• The majority of debit cardholders tend to use both PIN-secured and signature debit, rather than one method exclusively. Providing the option to make payments using both PIN-secured and signature debit increases the number of potential transactions those consumers make monthly.
• The study found that consumers who use both PIN-secured and signature debit at the point of sale conduct an average of 24 transactions per month versus 18 for those who solely use signature and 11 for those using only PIN.
• According to the survey, the debit card has the second highest preference for smaller purchases, with preference rising steeply and making it the most preferred payment method for purchases between $25 and $50.
• At $50, credit cards and debit cards have nearly equal and predominant levels of preference.

The survey also showed that 88% of consumers have a checking account, 72% of consumers have an ATM/debit card, 85% of cardholders reported using their ATM/debit cards at an ATM or at the point of sale in the 30 days prior to the survey and 70% of cardholders reported using their debit card to pay for goods and services in the 30 days prior to the survey.

Media available for download

• 2006-2007 Consumer Payments Usage Study fact sheet [.pdf 348 kb ]
• Importance Of Payment Method Attributes graph [.gif 23 kb]
• Method Of Debit Payment Among Cardholders graph [.gif 15 kb]
• Preferred Method Of Payment graph [.gif 15 kb]

For more information visit www.firstdata.com.