The study of 3,000 debit cardholders in Belgium, France, Germany, The Netherlands, Poland and the UK, which was undertaken by KRC Research on behalf of MasterCard, also found that eight in 10 consumers (80%) want to be able to use their debit card anywhere in Europe as they do at home.
However, consumer awareness of the impending Single Euro Payments Area (SEPA) is significantly behind demand for the benefits it will bring in less than a year’s time, MasterCard said.
Throughout Europe, fewer than one in 10 (9%) debit cardholders have heard of SEPA, suggesting that a great deal more can be done to promote the concept. Awareness is especially low in the Netherlands (2%), France (3%), the UK (5%), Germany (5%) and Belgium (8%). In contrast, in Poland, the newest European Union member, one in three (29%) recognize the term ‘SEPA.’
Of those who have heard of SEPA, only a small minority (9%) say they have a good understanding. This equates to fewer than 1% of debit cardholders across Europe.
Furthermore, the research showed that, after being told what SEPA is, debit cardholders are twice as likely to use their debit card to pay for purchases outside their own country across most retail categories, such as petrol, supermarket products, durables and food from restaurants, suggesting that consumer awareness programs around SEPA can drive debit card usage.
For example, four in 10 (38%) consumers currently prefer to pay for petrol with their debit card when traveling abroad, but, after being informed about SEPA, this increases to seven in 10 (68%), MasterCard said.
The Single Euro Payments Area may currently be a term recognized in finance circles, but what the man on the street needs to know is that they can use their debit card in the same way anywhere in Europe as in their own country. As our research shows, consumer awareness of SEPA is low, but there is no doubt that debit cardholders across Europe are completely behind the concept, said Javier Perez, president of MasterCard Europe.
He continued to say that the days of cash being king in Europe are numbered:
Every day, more people recognize the benefits of debit cards and turn their back on cash for day-to-day purchases. Our new research shows that European consumers agree debit cards are the payment method of choice for purchases between E10 and E199 and on a par with credit cards for larger amounts. The end of the cash era has been on the cards for some time and giving people the confidence to use their debit cards across Europe in the same convenient and secure way as at home will further encourage a future without costly cash.
European consumers are also using their cards more frequently, according to MasterCard. Four in 10 (39%) debit cardholders say that they have used their debit card more than the previous year. Only one in 12 (8%) believe that they have reduced their debit card usage.
