MasterCard notes that Aussies cast credit cards for debit

According to MasterCard Australia consumers are increasingly declining credit cards and use debit cards instead to pay for their purchases as they try to spend their money more consciously in light of the global financial crisis. MasterCard Australia executive vice-president, Australasia, Eddie Grobler noted that the company saw a change in consumers’ behavior when it comes to making payments for the purchased items.

"We've seen a change in terms of behavior," said Mr Grobler. "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," he added.

Mr Globe pointed to that Australia is still dominated by cash payments and he expects it will eventually shift to a cashless system of payments.

"We are currently still a cash-dominated society, where 70 per cent of all payments in the retail environment are done by cash,” he said. "Over a period of time we will move to become a less cash-based society and eventually, over time, to a cashless society."

He expects that the payment systems of the future will feature such products as MasterCard PayPass and Prepaid MasterCard.