Three keys to debit cards’ future as mobile banking builds
Debit cards keep churning out revenue. But for how long? Unless banks and credit unions proactively integrate this payment product into their mobile banking apps, they could miss connecting with Millennials. Rewards, ease of use and security features are key elements.
Even though debit cards remain highly profitable for banks and credit unions (at least those below $10 billion), the same forces of change disrupting consumer banking and payments could spoil the party.
But if financial institutions take steps now to adapt the product and its marketing to mobile-focused consumers, this retail payment stalwart can continue to grow. In fact, there is still a lot of untapped potential in the basic product, according to Dr. Kathy Snider of CO-OP Financial Services.
Millennials in particular represent an enormous potential market for debit cards. As Snider observes, more affluent consumers are less likely to use debit cards because credit cards, with their generous reward programs, are more available to them. But the huge Millennial generation, she says, is well-matched to debit cards.
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