National Payment Card, a legacy player in the proprietary decoupled debit card market, is expanding their field to include cards that offer open-loop capabilities. Using a supermarket chain as a delivery channel supports a focus on everyday spend and consumer rewards – both hallmarks of decoupled debit programs.
“National Payment Card Association in June will begin marketing an open-loop decoupled debit card this summer, according to Joe Randazza, its chief executive…Western National Bank of Midland, Texas, will issue the Coconut Creek, Fla.-based company’s card, which about a dozen supermarket chains will help promote, he said.”
However, should decoupled debit cards be regulated under the Durbin Amendment, the economic basis for these reward programs could be compromised if they rely on interchange fees which is suggested in any open-loop solution. At the same time, merchants who are interested in direct to consumer payment strategies could find these programs a lower-cost method of offering a private label payment card to the market.