Debit is a successful payment product, there is no doubt about it. Debit still rules in the United States, with nearly 70 billion debit transactions conducted annually by consumers and small businesses. That’s more transactions than are conducted with credit cards, ACH, checks, or person-to-person (P2P) payment solutions. Success often garners imitators and copy cats, and debit is no exception. The discussion in this Mercator Advisory Group ForeSight report considers some of the products that function similar to debit cards, meaning that they rely on available checking accounts to fund purchases that are have or will have potential impact on the marketplace that debit currently rules.
This include a review of:
- Target REDcard® and other decoupled debit programs
- Credit Card transactors and Commerce Bank’s Toggle® solution
- Amazon Prime Reload
- Request for payment solutions
How financial institution (FI) issuers might react to these encroachments on traditional debit territory will vary based upon each institution’s payment portfolio characteristics, individual strategy, and product profitability.
Download the full document here