Strategies to Make Your Debit Program Best-in-Class BY STEVE SIEVERT, Executive Vice President of Marketing & Brand Management, PULSE® Debit issuers today face several challenges, including flat or declining card bases, the continual threat of fraud and rising digital demand. These issues can also present opportunities. Issuers can create best-in-class debit programs by applying best practices in three areas: digital demand, the transaction experience and key performance indicators. Moreover, an issuer’s marketing program can help to reinforce these enhancements. By focusing on three key areas — digital capabilities, the customer experience and debit program performance — issuers can best respond to today’s challenges. DIGITAL DEMAND Mobile and card-not-present (CNP) debit transactions continue to gain popularity with cardholders. CNP transactions now account for over one-third of POS debit transactions and nearly half of debit spending, according to the 2024 PULSE Debit Issuer Study. And consumers show a strong preference for debit over alternative payment methods. A Discover-sponsored survey by Datos Insights revealed that 66% of consumers report using debit at least weekly and 79% at least monthly. Similarly, 30% use a digital wallet linked to their debit card at least weekly and 48% do so at least monthly. Younger- and higher-income consumers make more contactless and digital wallet transactions, so enabling digital payment capabilities — merchant wallets, in-app purchases, recurring card-on-file payments and wearable devices — can attract high-usage cardholders. Most institutions now support digital provisioning, enabling consumers to add their debit card to a digital wallet. However, increasingly, issuers are also offering digital instant issuance, in which debit card credentials are pushed directly into the consumer’s digital wallet for immediate access. This enables new and existing customers with lost or stolen cards to use their new payment credentials right Utah Banker 17
RkJQdWJsaXNoZXIy ODQxMjUw