MERCHANT FUNDED DISCOUNT NETWORKS

September 30, 2008 ??? 1:00pm EST (1 hour)
David Fish, Senior Analyst, Credit Advisory Services

Please join us September 30, 2008 at 1 p.m. for an informative examination of a relatively new concern in the payments ecosystem: Merchant Funded Discount Networks (MFDN). Key themes will include the following:

  • Merchant Funded Discount Networks are a relatively new marketing catalyst in the payments space, which is seeking new vehicles for providing a more robust proposition to all value chain participants. Merchant funded rewards are a “must have check-box” on most issuers’ card programs.

  • Mercator has identified 6 distinct go-to-market models for merchant funded discounts that can be used by participants in the payments space. These segments use distribution channels that can either be direct or indirect to the consumer.

  • Existing MFD network managers are increasingly seen as potential acquisition targets as card issuers of all kinds confront the “build, partner, or buy” dilemma. Regardless of the outcome of that argument, more and more card issuers and processors of all kinds (prepaid, debit, and credit) are considering an in-house MFDN.

  • As the online channel for MFDs becomes saturated, networks supporting discounts to be used in-store at brick and mortar locations will present added value in the new implementations.