You Customers Debit Preference is Down 20%!

By Susan Abbott, Managing Director

Did you know your customers debit use is down 20% even though your revenues may be growing?  Debit card usage, a key driver of revenue for financial institutions, is down because of consumer concerns for online shopping safety, and big box store breaches reports TSYS in their research, Debit’s Loss is PayPal’s Gain.  Concern over shopping online, the fastest growing area of retail sales, and in-store purchases, the largest area of retail sales, are considered risky places to use the debit card.  So consumers are choosing PayPal over debit online and credit cards over debit in-store.  How do you to stop the leakage?

Source:  TSYS 2015 US Consumer Payment Choice Study

Introducing the “companion” debit card the alternative to PayPal.  Our companion card strategy, now active with many clients, is just a second, debit-only checking account.   Better than prepaid cards (70% of prepaid users are “banked” customers) and alternative methods (think PayPal, Target Red Card and others) use these methods to segment their spending.  Our companion debit card solution offers consumers transaction segmentation methods and spending control, and revenue protection for the bank at little cost to you because it is just another checking account.  

But it is so much better for the consumer for spending security and control, and for moving funds back as opposed to trying to get funds back from a prepaid card or PayPal.  The customer simply “loads” and unloads the card through online banking and moves them back when the card and account is not in use.  When not in use, funds are not at risk if the card is compromised.  We should talk.