Alternative marketing thinking


Debit Cards Set Free

Debit cards get out of the bank with the recent announcement of decoupled debit. Here financial institutions are no longer limited to providing debit cards to their own savings or checking account holders. It all started with Capital One in association with MasterCard issued the “decoupled” card that can be linked to any bank account and used for purchases and ATM withdrawals, just like the debit card consumers get from their bank when they open an account. Things heated up with Tempo Debit jumped in with HSBC Finance Corporation’s card. And the doors are open for other issuers to walk into the party, wholeheartedly. What’s the potential appeal of this new card? Better rewards. Unlike debit cards today, which come with little or no rewards at all, the Capital One offering will offer rewards nearly as generous as those consumers get from their credit cards. Many consumers worried about mounting debt and tired of ever-trickier credit-card traps are increasingly turning to debit cards instead of credit. The signs are already evident. Nearly one in three dollars (28%) Americans spent on plastic last year were charged on Visa and MasterCard debit cards.

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