Driving Debit Growth: How Everyday Moments Fuel Success

Issuers are continually seeking new ways to take their debit programs to the next level of performance. Applying a few thoughtful strategies can make debit more engaging, useful, and rewarding for cardholders.

In a recent conversation with Discover^® Debit and PULSE^® issuers about debit-program performance, participants focused on everyday moments as the key to leveling up your debit program.

“Debit remains deeply embedded in how people manage everyday spending,” said Steve Sievert, Executive Vice President of Marketing and Brand Management for PULSE. “The 2025 PULSE Debit Issuer Study confirms this, revealing that active cardholders now make more than 35 debit transactions per month, on average.

“At the same time, financial institutions have new opportunities to elevate their debit programs through thoughtful strategies, making them more engaging, useful, and rewarding for customers who rely on debit every day.”

“Debit remains deeply embedded in how people manage everyday spending.”

  Steve Sievert
  Executive Vice President of Marketing and Brand Management for PULSE

The first 90 days are crucial

Several issuers shared a common realization: by the time a new card appears on a monthly usage report, the outcome is often already determined. If debit doesn’t become part of a cardholder’s routine early on, they often turn to another payment method or card.

For younger households, the alternative is often a fintech app that feels immediate and intuitive. For others, it may be a credit card that offers perceived flexibility during tight months. In some cases, the card just sits unused because activation felt like an extra step.

To help achieve top-of-wallet status, a few simple steps can have a big impact. Issuers emphasized the importance of simplifying activation, making cards available in mobile wallets immediately, and reaching out during the first few weeks when a card isn’t being used.

Small incentives can make a big difference

A theme that arose repeatedly in our discussion with issuers is that small, timely incentives and easy access can help debit become a natural part of everyday spending. Debit works best when it’s simple, works smoothly online, appears instantly in digital wallets, and offers rewards aligned with the consumer’s lifestyle rather than mired in fine print.

One issuer described a campaign focused on subscription payments. Customers were encouraged to move just one recurring bill to debit. There were no complex rules or excluded categories – just a clear nudge and a small incentive. The result exceeded the issuer’s expectations and were felt beyond subscription payments.

Empathy was also central in these conversations. Issuers recognize that many customers face financial pressure. Messaging that acknowledges that reality resonates far more effectively than ignoring it.

Turn potential friction into an opportunity

When the conversation turned to economics, issuers didn’t point to interchange rates but to missed transactions. A small business purchase might be declined because a point-of-sale limit hasn’t been revisited in years, or an online order flagged as risky when it isn’t. In those moments, customers rarely try again and often switch payment methods.

Several institutions shared stories of reviewing limits and fraud rules by segment, particularly for business debit. In many cases, modest adjustments led to noticeable improvements in approval rates and spend, turning potential friction into opportunity.

“Every authorization decision is a moment of truth,” Sievert noted. “Handled well, those moments reinforce positive perceptions of debit as a reliable, go-to payment choice.”

Retention happens earlier than you think

Attrition was another topic that struck a nerve with issuers. Several described it as feeling like sprinting on a treadmill, exerting maximum effort yet barely gaining ground. New accounts flow in while longstanding relationships quietly slip away.

The issue isn’t lack of data – it’s timing. Usage slowly tapers off, direct deposits stop, and cards go unused for weeks. These signals often show up long before an account closes.

Some institutions are responding by tying incentives to behaviors that anchor relationships, such as debit usage and direct deposit. Others are treating engagement as an ongoing effort rather than something that ends after onboarding.

Tying innovation to purpose

When the conversation turned to real-time payments and account-to-account transfers, what stood out was issuer confidence. Debit has adapted before, and it can adapt again, but only if institutions stay close to how consumers actually use it.

The prevailing view is that these and other money-movement capabilities only matter in the context of a clear business case and a role alongside debit. Issuers emphasized focusing on a few key priorities: keeping cards wallet-ready immediately, maintaining strong fraud controls, and approaching new capabilities strategically to ensure they complement debit rather than compete with it.

Keeping up with tech trends

Digital-first challengers, non-bank competitors, and new payment options like Buy Now, Pay Later are reshaping the payments landscape. Issuers are keeping a watchful eye and exploring ways to deepen the total relationship, such as:

• Linking rewards across checking, debit, and credit
• Anticipating customer needs through data
• Nudging product adoption before a competitor can

In one pilot, proactive outreach during the first month increased sustained card usage by highlighting benefits customers hadn’t realized they had.

Turning insight into action

The conversation with PULSE issuers reinforced a simple truth: Debit works best when it receives focused, strategic attention. Financial institutions that reduce friction appropriately, respond to early signals, and design with empathy ensure debit shows up reliably in the everyday moments that matter, whether it’s making a purchase, paying a bill, or reimbursing a friend.

To learn more about the range of payment options available to your institution through PULSE, connect with your Account Executive.