2024 Trends & Predictions: Debit Payments

Consumers are accustomed to shopping in stores and online, mobile ordering, social commerce, and living life on-demand, with instant gratification. More important, they want easy, seamless checkout experiences wherever and whenever they shop.

Consumers typically use various payment methods for their purchases, motivated by convenience, rewards, spending budget, ticket size, and transaction type. Many consumers, especially Gen Z, want to spend money they already have and live within their means, which often makes debit cards their payment choice. Shoppers are also keen on using newer digital payment methods that provide greater convenience, efficiency, and security.

FedNow, the Federal Reserve’s new, highly anticipated instant payment system, launched in July 2023 and intensified the momentum and demand for real-time payments across the United States. Other U.S. faster payment systems are seeing significant upticks in transaction volume and value across the board.

Card fees continue to be a contentious battle for merchants. Some retailers are exploring creative ways to influence customer payment behavior with discounts, rewards, and new alternative payment options.

In 2024, debit payments will center on digital and real-time innovation, reducing costs and enhancing customer satisfaction and loyalty.