Debit cards are no longer just a convenient alternative to cash; they’re now stepping into the spotlight with enticing rewards programs. Traditionally associated with credit cards, rewards such as cashback, discounts, and loyalty points are increasingly being offered to debit cardholders. This shift reflects growing competition among financial institutions and fintechs to attract consumers who prefer spending from their own funds rather than relying on credit.
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Data for today’s episode is provided by Mercator Advisory Group’s Report: 2021 North American PaymentsInsights: The State of the Canadian Consumer Market-Prepaid/Gift, Credit, and Debit Cards
Rewards Offered for Debit Cards Among Canadian Consumers:
- Among those motivated by debit rewards, 47% report having a points-based program.
- Among those motivated by debit rewards, 45% report having a cash back program.
- Among those motivated by debit rewards, 32% report having money-saving offers or discounts at retailers or service providers.
- Among those motivated by debit rewards, 14% report having general purpose, network branded gift cards.
- Among those motivated by debit rewards, 10% report having retailer-specific gift cards.
About Report
Mercator Advisory Group’s most recent report, 2021 North American PaymentsInsights: The State of the Canadian Consumer Market-Prepaid/Gift, Credit, and Debit Cards, summarizes the market for prepaid, debit, and credit cards in Canada. The report looks at consumers’ preferred way to use these payment products, how frequently they use them, and what they think about these payment options.
The report is based on the North American PaymentsInsights survey administered between August 27 and September 14, 2021. Participants included 1000 Canadian consumers ages 18 years or older. In addition to providing data on the nature of prepaid/gift, debit, and credit cards, the report digs deeper into different types within these three payment categories while looking at the rate at which certain types of these cards are widely used among the respondents in Canada.
“Through the survey data, we have seen some interesting influences of COVID on the increased use of debit cards in 2021.” stated Pragya Khanal, an analyst working on the report.