Summary
Signature debit remains a payments alternative only because there still is no PIN debit product on the Internet. Also playing into the picture is that Issuers prefer Signature Debit due to higher Interchange rates. On the otherhand, merchants, acquirers, and consumers are in favor of PIN Debit.
Analysis
PIN debit continues to grow despite the marketing efforts of Card issuers who actively market against PIN debit in favor of Signature debit. (Who but bankers would spend marketing dollars demoting one of their own products?). PIN debit is preferred by merchants and consumers because of percieved security, cash back availability, speed at the POS, and less cost to the merchant. Once we have a viable PIN debit product on the Internet, we will see a real growth spurt in PIN over Signature. And, by the way, we should see PIN on the Internet by the end of next year, 2010.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
