Amid Recession, PIN Debit Growth Far Outpaces Signature

Editor's Note:  I don't see the connection between the recession and PIN Debit usage at all.  In fact, quite the opposite.  Think about it.  Visa and MasterCard attach rewards to "signature" debit, therefore, in a recession, you would think that consumers would want the rewards and SIGNATURE would be outpacing PIN.

Sure, I see the debit over credit recession connection, but cannot digest the PIN over Signature in a recession propaganda.  Now, had the article made the argument that consumers are becoming more wary, (is undesensitized a word?) about payments security, and thus are choosing PIN over SIG, I'd have to wholeheartedly agree.

But, according to research, released yesterday by the Pulse EFT Network, PIN Debit grew nearly four times the rate of signature debit between July and December which is when the recession kicked in.  Here's a blurb from DTN...

This, from John Stewarts' Digital Transactions:

"While the recession is making an impact on consumer spending generally, PIN debit card usage is faring considerably better than that of signature debit.

PINdebit transactions by consumers grew 15% between July and December, theperiod during which the economic downturn began making itself felt,nearly four times the rate of growth for debit transactions securedwith a signature, according to research released on Thursday by the Pulse electronic funds transfer network.

Thestudy, conducted for the Houston-based network by consulting firmOliver Wyman Group, also found that fraud rates on debit cardtransactions are falling; that usage of debit cards for bill payments,including online PIN-less payments, is registering significant numbers;and that awareness of a wide range of alternative-payment methods isvery high among bank card executives. Also, the study shows steadilyrising adoption by banks of mobile-banking technology.

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