Product Code: VR1039MR
Debit card issuers use loyalty and reward programs as tools for customer acquisition and retention, as the programs provide scope to deepen banking relationships and generate revenue. A number of challenges, including regulation, have limited issuers' ability to fund reward and loyalty programs through interchange revenue. Loyalty programs have become highly commoditized, leading to perceive falls in their values by consumers, and compelling debit card issuers to re-evaluate their strategies and adopt new loyalty solutions.
Changes in technology, regulation and consumer behavior influenced the evolution of debit card loyalty programs during the last decade. Loyalty programs are maturing in many countries, rewarding customers' overall banking relationships, rather than just debit card spending. Products such as overdrafts, direct debits, utility payments and savings accounts offer room for increased revenue generation for banks, compensating for lower interchange fees earned from debit card spending. Both issuers and card schemes are partnering with airlines, hotels, resorts and retailers to offer merchant-funded rewards. In addition, banks have increasingly focused resources on core banking, due to rising pressure on profits. Consequently, peripheral activities such as marketing and loyalty programs for debit cards are increasingly being outsourced.
The report provides insights into the changing dynamics of debit card loyalty programs:
- It analyzes market opportunities and consumer preferences for debit cards.
- It explores emerging loyalty models for debit card customers.
- It discusses the impact of technology such as advent on of mobile payments on loyalty and cost.
- It captures the impact of changing regulatory dynamics.
- It explores key strategies deployed by debit card issuers.
- This report covers top-level data of global debit card use and comparative market shares of debit and credit cards.
- It includes top-level review and forecast data (2010-2019) for debit card use in selected markets.
- It provides comparative analysis of key loyalty programs in selected markets.
- It covers recent and expected regulatory changes affecting debit card loyalty programs in key markets.
- It includes case studies to highlight industry best practice and market trends.
Reasons To Buy
- Gain understanding of the changing landscape in the debit card market. Can debit card loyalty programs offer similar incentives to credit card loyalty programs
- Understand how market leaders are modifying loyalty programs in a highly challenging and competitive market
- Deep dive into market trends to understand if your organization requires a shift in its loyalty model.
Table of Contents
1. Executive Summary
2. The Debit Opportunity
- 2.1. Debit Card Use Continues to Grow Globally
- 2.2. Shift from Credit to Debit Following the Subprime Crisis
3. Debit Card Loyalty Programs and their Dynamics
- 3.1. Changing Consumer Preferences
- 3.2. Merchant Funding of Loyalty Programs and its Effect on Banking Profitability
- 3.3. Relationship Programs
- 3.4. Outsourcing of Debit Card Loyalty Programs
- 3.5. The Effect of Mobile Payments and Digital Wallets
4. Loyalty Programs and Rewards as Drivers of Current Account Switching
5. The Effect of Regulation on Debit Card Loyalty Programs
6. Debit Card Loyalty Programs in Key Markets
- 6.1. The US
- 6.1.1. Comparative analysis of key loyalty programs
- 6.1.2. Strategies adopted by key banks
- 6.2. Canada
- 6.2.1. Comparative analysis of key loyalty programs
- 6.2.2. Strategies adopted by key banks
- 6.3. The UK
- 6.3.1. Comparative analysis of key loyalty programs
- 6.3.2. Strategies adopted by key banks
- 6.4. Australia
- 6.4.1. Comparative analysis of key loyalty programs
- 6.4.2. Strategies adopted by key banks
- 6.5. Spain
- 6.5.1. Comparative analysis of key loyalty programs
- 6.5.2. Strategies adopted by key banks
- 6.6. South Korea
- 6.6.1. Comparative analysis of key loyalty programs
- 6.6.2. Strategies adopted by key banks
7. Case Studies
- 7.1. Bank of America - 'Keep the Change' Initiative Helped to Acquire Customers
- 7.2. Pinnacle Bank - Partnership with Fiserv to Improve Debit Card Loyalty
- 7.3. Bank of Montreal - Targeting Frequent Flyers with Air Mile Rewards
- 7.4. Lloyds - Merchant-Funded Rewards to Reduce Costs
- 8.1. Methodology
- 8.2. Contact Timetric
- 8.3. About Timetric
- 8.4. Timetric's Services
- 8.5. Disclaimer
List of Tables
- Table 1: Debit Card Reward and Loyalty Programs - Current Developments and Future Outlook
- Table 2: Debit Cards vs Prepaid Cards in Selected Countries, 2014
- Table 3: The Impact of Regulation on Banks' Incomes
- Table 4: The US - Comparison of Debit Card Loyalty Programs
- Table 5: Canada - Comparison of Debit Card Loyalty Programs
- Table 6: The UK - Comparison of Debit Card Loyalty Programs
- Table 7: Australia - Comparison of Debit Card Loyalty Programs
- Table 8: Spain - Comparison of Debit Card Loyalty Programs
- Table 9: South Korea - Comparison of Debit Card Loyalty Programs
List of Figures
- Figure 1: Global Debit Card Transaction Volumes and Values, 2010-2014
- Figure 2: Global Transaction Volumes - Debit Cards vs Credit and Charge Cards (%)
- Figure 3: Regional Transaction Volumes - Debit vs Credit Cards (%)
- Figure 4: Key Success Factors in a Loyalty Program
- Figure 5: Analysis of Key Consumer Segments
- Figure 6: Payment Source Preferences in the Mobile Domain, 2012
- Figure 7: Comparison of Loyalty Models
- Figure 8: Percentage of Respondents Forming New Primary Relationships with Banks, 2013
- Figure 9: Comparative Assessment of Debit Card Loyalty Programs in Key Developed Economies
- Figure 10: The US - Debit Card Transaction Volumes and Values, 2010-2019
- Figure 11: Canada - Debit Card Transaction Volumes and Values, 2010-2019
- Figure 12: The UK - Debit Card Transaction Volumes and Values, 2010-2019
- Figure 13: Australia - Debit Card Transaction Volumes and Values, 2010-2019
- Figure 14: Spain - Debit Card Transaction Volumes, 2010-2019
- Figure 15: South Korea - Debit Card Transaction Volumes and Values, 2010-2019