Who Wants a Decoupled Debit Card?
Aite Group has published a new report titled "Who Wants a Decoupled Debit Card?" that it says "reveals that there is a sizeable potential market for decoupled debit cards in the United States, with about a third of cardholders expressing interest."
Based on an online survey of 500 U.S. consumers, completed in January of 2008 and aimed at investigating trends in payments, rewards and loyalty, this report fleshes out key characteristics of the target market and provides recommendations to product managers at card issuers.
Among its key findings, the report notes that consumers interested in decoupled debit cards are "reward addicts," going out of their way to earn rewards, participating in all types of rewards programs and frustrated by programs that are restrictive.
"Because co-brand cards usually restrict the scope of the rewards, as opposed to non-co-brand reward cards, our study suggests that the co-brand approach might not be the best path to marketing decoupled debit cards" says Gwenn Bézard, research director with Aite Group and co-author of the report. "Program managers may want to focus on issuing decoupled debit cards on their own, or as part of a coalition marketing alliance with a large number of merchants."
This 64-page Impact Report contains 73 Figures and two Tables.
I love my PayPal debit card. They don't gouge me as much as BofA on international transaction commissions (I am writing this from the UK), they give me competitive interest on my balances, and it is a convenient container for my discretionary spending budget.
I would guesstimate my BofA debit card transaction volume was at least halved since I started using the PayPal debit card.
Posted by: Fazal Majid | March 07, 2008 at 06:53 PM