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Data for today’s episode is provided by Mercator Advisory Group’s viewpoint – Ready or Not, U.S. Contactless Debit Card Issuance Takes Off.
There were 4 good reasons banks wouldn’t issue contactless debit:
- Not all merchants are currently accepting contactless transactions
- Consumers aren’t demanding tap-and-go technology
- It’s unlikely consumers would switch banks to get a contactless card
- Contactless debit cards are expensive for issuers to produce
But several large banks have announced they’re replacing existing debit cards with dual interface cards, including:
- Bank of America
- JP Morgan Chase
- Wells Fargo
In addition, several others have signaled they will too:
- Commerce Bank
- HSBC
- KeyBank
- Santander
- TD
About the viewpoint
Several issuers have announced their intentions to issue dual interface cards, ushering in contactless transactions at the point-of sale for debit cardholders.
As cards issued during the migration to EMV chip cards are now being re-issued to accountholders, financial institutions are moving to contactless, even if the acceptance market isn’t quite ready.