Merchants Looking to Tie Loyalty to a Payment Product May Find a Solution in Decoupled Debit

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Mercator Advisory Group releases new research on decoupled debit, its benefits for merchants, and the threat it poses to bank-based debit.

One of the 3 exhibits included in this research note

Decoupled debit offers merchants most of the benefits they seek in a payment—namely, independence from the card networks, less expensive transaction processing costs, a platform to extend rewards, and less fraud than traditional card transactions.

Decoupled debit, a payment form that lets consumers pay for purchases directly from their checking accounts, has been quietly and slowly gathering users where meaningful rewards are a part of the offering. It is a payment form that allows merchants to circumvent the card networks for a less expensive payment transaction.

Mercator Advisory Group’s new report Decoupled Debit: The Start of Mainstream Adoption? provides an understanding of the current decoupled debit market in the U.S. and how it works, why the current payment industry environment may foster more decoupled debit programs, indicators that decoupled debit may be gaining popularity and thus threatening bank-based debit, and the revised Payment Services Directive (PSD2) in the European Union.

“Decoupled debit is a payments product to watch for future development and growth. It offers merchants most of the benefits they seek in a payment—namely, independence from the card networks, less expensive transaction processing costs, a platform to extend rewards, and less fraud than traditional card transactions,” commented Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group and author of the report.

Highlights of the report include:

  • Current market sizing
  • A look at current decoupled programs
  • Decoupled debit in the European Union
  • Product challenges
  • Market forces that are providing growth opportunities

This report has 14 pages and 3 exhibits.

Companies mentioned in this report include: First Data, MasterCard, Target, VocaLink, and ZipLine.

Members of Mercator Advisory Group’s Debit Advisory Service have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

For more information and media inquiries, please call Mercator Advisory Group's main line: 1-781-419-1700, send email to info(at)mercatoradvisorygroup(dot)com.

For free industry news, opinions, research, company information and more visit us at http://www.PaymentsJournal.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Karen Yetter
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