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Private Label Debit Hangs On

Mercator Advisory Group by Mercator Advisory Group
November 18, 2011
in Analysts Coverage
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Private label debit seems to be the product always looking for a home. However with U.S. consumers concerned about budgets and retailers gaining more capital from interchange fee regulation, it doesn’t look like it’s going to go away any time soon.

It is still a niche product, but one that can offer merchants brand loyalty opportunities if they have a mind for building that all-important consumer base. And, as consumers become more and more comfortable using alternative payment products at a distance from their primary checking account funds, debit cards become less of a hard sell if there are real savings to back them up.

Many consumers like store debit cards, because they prefer not to take on more credit, pay interest or add debt in today’s tough economy. And debit cards that withdraw money directly from your checking account are attractive for folks trying to keep within a budget, payment experts say.

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