Even with Canadian regulators attempting to ring-fence their local debit network, issuers are seeing value in offering multi-network enabled debit cards.
The need to serve consumers’ growing demand for online transaction capabilities, the ability to use depository account funds for purchases outside the country, and attractive interchange fee revenues are all driving recent Canadian issuer product launches, including this one from TD Bank. Careful to draw the distinction that in-country use remains the purview of Interac, nevertheless, the global networks are finally making headway in penetrating this market.
From TD’s press release:
TD’s Visa Debit solution allows customers, including those who prefer to use debit or those who do not have access to a credit card, to shop online and in-person from merchants outside of Canada.
Debit cardholders will continue to be able to withdraw cash from automated banking machines (ABMs) and purchase goods and services at Canadian merchants with funds directly from their bank account. Point of sale purchases in Canada will continue to be processed through the Interac Debit payments network.
Enabling more uses for debit cards may become even more important to Canadian banks, as recent reports indicate that consumer debt is rising in this country where conservative spending trends appear to be changing.
Click here to read more from the press release.