PULSE® has commissioned the Debit Issuer Study for the past 18 years as part of the network’s commitment to delivering value to participants. The study combines issuer surveys and interviews to gather quantitative and qualitative information from credit unions, community banks, regional banks, and national banks across the U.S.
Steve Sievert, PULSE Executive Vice President of Marketing & Brand Management, presented findings from this year’s study in a recent PULSE Live webinar. Sievert highlighted four key trends that emerged from the study.
1. Debit growth returned to a more moderate level.
After seeing unusual volatility in debit spending in 2020 and 2021, transaction and dollar-volume growth cooled off dramatically in 2022, indicating stabilization of the debit market and a shift back to more normalized pre-pandemic consumer debit behaviors.
2. Pandemic-driven digital payment behaviors solidified.
The pandemic has left its mark on consumers, who have not only gotten comfortable with digital payment behaviors that surged over the last few years, but adopted them as habits. We live in a digital-first world in many aspects of our lives today and, increasingly, debit is becoming no different. And “digital debit” is proving its durability with consumers, says Sievert.
3. Fraud became a primary focus for issuers.
All study participants reported an increased level of investment and focus on fraud prevention and mitigation to combat fraudsters’ move to digital channels. Of the issuers surveyed, 76% enhanced their fraud models and 40% improved their chargeback experience in 2022.
4. Issuers elevated the importance of the customer experience.
As debit becomes increasingly digital, delivering an elevated customer experience is now a strategic priority. As a result, issuers are ramping up investment in mobile self-service capabilities, which are critical in an always-on economy where consumers expect more control over all aspects of their lives.