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Consumers shun credit cards in favour of debit

It seems consumers are turning away from credit cards in the financial crisis and using debit cards to pay for purchases to avoid going into debt, MasterCard Australia says.

MasterCard Australia executive vice-president, Australasia, Eddie Grobler said they have noticed a change in credit behaviour, with many users now turning to debit cards as the desired credit solution.

“There is a slowdown in credit card usage but we’ve also witnessed an increase in usage of our debit card products. It seems to me the consumer is more comfortable to access (their) own funds now,” Mr Grobler said.

According to Grobler, Australia will eventually become a cashless society with a further emphasis being placed on the use of both credit and debit cards.

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