Co-op report highlights debit trends to watch in 2019
Rising instant issuance capabilities and growing PIN debit transaction volumes are boosting credit union debit card programs, according to a new report from Co-op Financial Services.
The report highlights several key trends for credit union issuers, including:
- Nearly 40 percent of respondents said their credit unions have achieved a 70 percent or greater ratio of debit cards to checking accounts with instant issuance.
- 63 percent offer or are planning to offer instant issuance.
- 55 percent are considering or actively offering loyalty rewards programs to encourage debit card use.
- 55 percent have seen increases in the number of debit cards enrolled in mobile wallets; 53 percent have seen increases in the number of debit cards transactions made from mobile wallets.
- 80 percent of respondents believe the ability to check balances and transaction details is extremely important in the mobile banking channel.
- 50 percent believe card alerts and bill payments are extremely important to debit cardholders who use a mobile app to access debit card features.
- Most respondents think debit fraud through card-not-present channels will continue to grow, but are confident that their organizations are well-positioned to protect cardholders.
- 91 percent rely on a neural network to detect and stop fraud; 34 percent have invested more in fraud tools at the processor level in the last 12 months.
According to Fed data reported last month, debit cards accounted for nearly 67 percent of card payments in 2017.
The Debit Benchmark Report was prepared by Co-op in partnership with Mastercard and Mercator Advisory Group. The study analyzed survey responses from 240 U.S. credit union participants related to debit card use, issuance and management.
Download the free report.