Debit card usage continues to grow driven by a proliferation of debit card providers and offerings, near-universal acceptance infrastructure, financial inclusion initiatives, and evolving customer behaviors.
However, as debit card portfolio economics are put under increasing pressure, issuers are re-assessing their debit card value propositions to ensure they are continuing to meet customer expectations, while ensuring financial and operational viability.
Global debit card trends
Globally, debit cards – both plastic and digital or virtual – continue to be a leading payment product.
Strong growth in debit card issuance and usage globally in recent years has been driven by seven key factors:
- Proliferation of financial inclusion initiatives
- Uncertainty is driving consumers to avoid debt
- Growing support for lower interchange fees
- An expansion of digital channels
- Growing number of debit card providers and offers
- Improved debit card functionality and security
- Broadening acceptance and infrastructure
Challenges facing traditional issuers
Although the debit card market is expanding rapidly, incumbent issuers are facing increasing pressures on their debit card portfolios from:
Enhancing debit card value propositions
To keep debit cards relevant and competitive, issuers should prioritise transforming debit cards from simple payment tools into a versatile financial assets.
Focusing on three key areas could help issuers strengthen their debit card value propositions:
Read the full Card Strategy Practice report, exclusively on Mastercard Business Intelligence Market Trends, to get an in-depth analysis of the global debit card landscape. Uncover debit card economics, global trends, key challenges facing traditional issuers, and best practice debit card value propositions.
