Cross-Border Debit Card Spending Increases

The usage of European Maestro debit cards1 for cross-border payments at retailers rose by 24% in 2007 compared to the previous year.

As European consumers get into the
habit of borderless shopping, growth at traditional debit card usage
locations such as petrol stations is being joined by other categories
including supermarkets (up 28% year-on-year in 2007) and clothing (up
30% year-on-year in 2007). This underscores Maestro’s value as a
’plastic Euro’ facilitating international trade through its use
as a means to pay for everyday goods and services.
MasterCard’s
analysis highlights the move by European consumers to cashless
payments as seen by the increasing share of Maestro debit card
transactions for purchases at retailers versus cash withdrawals at
ATMs. In 2007, 42% of European Maestro debit card transactions were
at merchant point-of-sale terminals, up from 37% in 2005. ATM cash
withdrawals accounted for 58% of the transactions in 2007, down from
63% in 2005. Though these increased in absolute terms, they lost
ground to cashless payments on Maestro cards signalling the
development of a cash free future for European consumers and
retailers.