Debit Rewards At the Top Fifty Banks
NEW RESEARCH REPORT BY MERCATOR ADVISORY GROUP
This report evaluates the changes that have occurred in the Debit Reward marketplace in the last year by comparing the state of the debit reward programs at the top fifty debit card issuers (in annual card holder spending) today as compared to more than a year ago.
Since Mercator Advisory Group last evaluated the debit rewards program operated by the top fifty financial institutions, sixty-six new or modified debit reward programs have been introduced and eleven financial institutions have launched their first debit reward programs. As a result of this much wider adoption of debit reward programs, thirty-two of the top fifty institutions (64%) now have one or more debit reward programs, up from 40% last year. Also important to note is that there are now eighteen banks operating multiple debit reward programs, up from just seven last year. These financial institutions clearly believe the initial investment paid off and are now expanding their programs.
Tim Sloane, Director of the Debit Service for Mercator Advisory Group, and the author of this report indicates that these top fifty institutions represent a significant trend.
“These top fifty institutions account for 67% of all signature debit card spending on MasterCard and Visa. Given the current deployment of debit reward programs 60% of all signature debit spending could participate in a debit reward program. While debit reward programs are rapidly showing up at more and more institutions, new debit reward programs are changing the landscape in a big way. Programs that leverage merchant participation continue to gain traction and there remains significant opportunity for innovation within these programs. I fully expect existing debit reward programs will continue to be deployed by financial institutions even as new reward programs evolve. In the future, newer programs are likely to have an even greater emphasis on efficiency, being structured to drive enhanced retention at declining costs to the institution.”
One of the 12 Exhibits in this report:
Mileage Based Reward Programs at Selected Institutions
This report is 27 pages long and contains 12 exhibits.
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