Weitere ähnliche Inhalte Ähnlich wie Credit, Debit and Prepaid Cards Industry Update: 2011 Study of Payment Trends and Member Preferences - Credit Union Webinar Slides (20) Mehr von NAFCU Services Corporation (20) Kürzlich hochgeladen (20) Credit, Debit and Prepaid Cards Industry Update: 2011 Study of Payment Trends and Member Preferences - Credit Union Webinar Slides1. Credit, Debit and Prepaid Cards Industry Update:
A 2011 Study of Payment Trends
and Member Preferences
Kevin O’Donnell, Vice President
Discover Financial Services
1
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
2. Who We Are
• Comprehensive • Leading U.S. PIN- • Global brand known for
payments solution based ATM/debit service, rewards, and
including credit, debit network with 4,400+ cardholder benefits
and prepaid participating financial
• In over 185
• $103 billion in volume institutions
countries/territories
• 30+ Issuers • All top national PIN
• Millions of premium
debit retailers accept
• Signed agreements with consumer and corporate
PULSE
126+ merchant cardmembers
acquirers representing • Over 780K ATMs and many who travel to U.S
98% of U.S. merchants cash access locations
• $27 billion in volume
worldwide
• Enabled over 1 million • 50 franchises
previous non-acceptors • $118 billion in volume
2
Note: Volume based on the trailing four quarters ending 1Q11
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
3. How We Got Here
NAFCU Services Preferred Partner
– Expertise and innovation in credit, debit, and prepaid solutions
– Collaborative, flexible approach
– Known for customer service, rewards, and loyalty
– Commitment to your brand and your members financial health
Invited to share our findings to help you understand the market and
grow your member base
3
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
4. High Gas Prices
High Gas Prices
As of June 20, 2011, the national average for a gallon Impact Consumer
Impact Consumer
of gas is $3.65 – up more than $0.92 from last year.1 Spending //
Spending
Sentiment
Sentiment
Price Spike – Libyan
rebellion stops 1.5 million Summer Blend
daily exports of crude3 Increases Cost
Gas prices could surpass Oil Speculators
the 2008 record level of Push Up Price
$4.11 per gallon.3
Unrest in
Analysts estimate oil and gas prices Middle East
won’t stabilize until summer.2
4
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
5. Consumer Confidence Versus
Food, Gas and Unemployment
145
135
125
115
105
95
85
75
Se
N
D
Ja
Fe
M
Ap
M
Ju
Ju
Au
O
Ja
Fe
M
Ap
ov
ec
ar
ay
ct
ar
p-
n-
n-
l-1
n-
b-
b-
r-
g-
r-
-1
-1
-1
-
-
10
10
-
10
11
11
10
11
11
10
10
10
0
10
0
0
0
CPI:Food Avg Regular $/Gal Consumer Confidence Unemployment
5
Source: U.S. Bureau of Labor Statistics, U.S. Department of Energy and The Confidence Board
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
6. Today’s Agenda
Credit Usage
– Credit
– Debit and Prepaid Usage
Consumer and Member Interest
– Mobile: Banking, Payments and Couponing
– Merchant Funded Rewards
Solutions for Credit Unions
– Gen Y Targeting and Offerings
Key Takeaways
6
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
7. Credit Usage
7
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
8. How Members Use Their Cards Credit Union
member year-
I Have Used One or More of My Major over-year use
Credit Cards in the Past Six Months is increasing
96%
95%
94%
93%
92%
91%
90%
89%
88%
87%
86%
02
03
04
05
06
07
08
09
10
11
12
01
02
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0-
0-
0-
0-
0-
0-
0-
0-
0-
0-
0-
1-
1-
04
05
06
07
08
09
10
11
12
01
02
03
04
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
1
1
1
1
3-Month Period
CU: Average Non-CU: Average CU Non-CU
8
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
9. How Members Use Their Cards Long term
trend: CU
Transactor -- Always/Almost Always members less
Pay the Entire Balance likely to be
transactors
58%
56%
54%
52%
50%
48%
46%
44%
42%
02
03
04
05
06
07
08
09
10
11
12
01
02
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0-
0-
0-
0-
0-
0-
0-
0-
0-
0-
0-
1-
1-
04
05
06
07
08
09
10
11
12
01
02
03
04
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
1
1
1
1
3-Month Period
CU: Average Non-CU: Average CU Non-CU
9
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
10. How Members Use Their Cards
Revolver -- Usually Pay
Less Than the Entire Balance
54%
52%
50%
48%
46%
44%
42%
40%
02
03
04
05
06
07
08
09
10
11
12
01
02
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0-
0-
0-
0-
0-
0-
0-
0-
0-
0-
0-
1-
1-
04
05
06
07
08
09
10
11
12
01
02
03
04
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
1
1
1
1
3-Month Period
CU: Average Non-CU: Average CU Non-CU
10
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
11. How Members Use Their Cards
I am Currently Paying Down a Balance
on One or More of My Major Credit Cards
58%
56%
54%
52%
50%
48%
46%
44%
42%
40%
02
03
04
05
06
07
08
09
10
11
12
01
02
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0-
0-
0-
0-
0-
0-
0-
0-
0-
0-
0-
1-
1-
04
05
06
07
08
09
10
11
12
01
02
03
04
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
1
1
1
1
3-Month Period
CU: Average Non-CU: Average CU Non-CU
11
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
12. Polling Question
12
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
13. How Members Use Their Cards
Opened a New Credit Card Account Keep product
in the Past 3 Months offerings current
and competitive
14%
12%
10%
8%
6%
4%
2%
0%
11
12
01
02
07
08
10
09
02
03
04
05
06
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0-
1-
0-
0-
0-
1-
0-
0-
0-
0-
0-
0-
0-
02
10
01
03
04
12
05
09
11
04
06
07
08
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
1
0
1
0
0
1
1
0
0
0
0
0
0
3-Month Period
CU: Average Non-CU: Average CU Non-CU
13
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
14. How Members Use Their Cards
Credit Union
I am Concerned About My Credit Card members fear
Interest Rate Rising Over Time rising rates
56%
54%
52%
50%
48%
46%
44%
42%
02
03
04
05
06
07
08
09
10
11
12
01
02
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0-
0-
0-
0-
0-
0-
0-
0-
0-
0-
0-
1-
1-
04
05
06
08
09
10
11
01
02
03
04
07
12
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
1
1
1
1
0
0
3-Month Period
CU: Average Non-CU: Average CU Non-CU
14
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
15. How Members Use Their Cards
Sell on your
I Don't Trust Any Credit Card advantages but
Company to Treat Me Fairly know your
competition
35%
30%
25%
20%
15%
10%
02
03
04
05
06
07
08
09
10
11
12
01
02
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0-
0-
0-
0-
0-
0-
0-
0-
0-
0-
0-
1-
1-
04
05
06
08
09
10
11
01
02
03
04
07
12
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
1
1
1
1
0
0
3-Month Period
CU: Average Non-CU: Average CU Non-CU
15
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
16. How Members Use Their Cards
Grocery Spend
60%
50%
40%
30%
20%
10%
0%
02
03
04
05
06
07
08
09
10
11
12
01
02
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
0
0
1
1
-0
-0
-0
-1
-0
-0
-0
-0
-1
-1
-0
-0
-0
9
0
1
1
4
5
8
2
6
7
2
3
4
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
1
1
1
1
3-Month Period
Debit Avg Credit Avg Debit Credit
Members continue to
prefer debit for grocery
by 50% to 30%
16
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
17. How Members Use Their Cards
Gas Spend
46%
44%
42%
40%
38%
36%
34%
02
03
04
05
06
07
08
09
10
11
12
01
02
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
0
0
1
1
-0
-0
-0
-0
-1
-0
-0
-1
-1
-0
-0
-0
-0
9
5
0
4
8
6
7
1
2
1
2
3
4
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
1
1
1
1
3-Month Period
Debit Avg Credit Avg Debit Credit
No significant shifts in
debit vs.. credit usage,
even with higher
gas prices 17
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
18. How Members Use Their Cards
Dining Out Spend
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
02
03
04
05
06
07
08
09
10
11
12
01
02
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
0
0
1
1
-0
-0
-0
-1
-0
-0
-0
-1
-1
-0
-0
-0
-0
4
5
8
9
0
6
7
1
2
1
2
3
4
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
1
1
1
1
3-Month Period
Debit Avg Credit Avg Debit Credit
Even split between
debit vs.. credit
18
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
19. How Members Use Their Cards
Routine Household Purchases
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
08
02
03
04
05
06
07
09
10
11
12
01
02
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
0
0
1
1
-1
-0
-0
-0
-0
-0
-0
-0
-1
-1
-0
-0
-0
9
0
1
4
5
6
7
8
1
2
2
3
4
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
1
1
1
1
3-Month Period
Debit Avg Credit Avg Debit Credit
Members have slight
preference for debit vs..
credit at 37%
19
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
20. How Members Use Their Cards
Major Household Purchases
80%
70%
60%
50%
40%
30%
20%
10%
0%
02
03
04
08
11
05
06
07
09
10
12
01
02
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
0
0
1
1
-0
-0
-1
-0
-0
-0
-0
-0
-1
-1
-0
-0
-0
5
9
0
1
2
1
4
6
7
8
2
3
4
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
1
1
1
1
3-Month Period
Debit Avg Credit Avg Debit Credit
Major household
purchases have
increased from 59% to
67% on credit 20
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
21. How Members Use Their Cards
Major Home Improvement
60%
50%
40%
30%
20%
10%
0%
02
03
04
08
05
06
07
09
10
11
12
01
02
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
0
0
1
1
-0
-0
-1
-0
-0
-0
-0
-0
-1
-1
-0
-0
-0
5
9
0
1
2
1
4
6
7
8
2
3
4
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
/1
0
0
0
0
0
0
0
0
0
1
1
1
1
3-Month Period
Debit Avg Credit Avg Debit Credit
Home improvement
expenses have gone from
45% to 51% on credit 21
Source: Millward Brown, 2011 Brand Tracking Study
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
22. Debit and Prepaid Usage
22
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
23. Debit Transaction Mix
Consumer PIN and Signature Transaction Transaction growth decreased to 8% for
Growth
PIN debit and increased slightly to 10%
for signature debit
24%
Signature debit accounted for 68% of
20% total POS transactions in 2010
Transaction growth
16%
Some regulated Financial Institutions
13% 13% (those with at least $10 billion assets)
expressed a desire to reverse the
12% 10%
9% 9% signature/PIN mix due to impending
8%
8%
regulation
4%
0%
PIN Transactions Signature
Transactions
2007-2008 2008-2009 2009-2010
23
Source: PULSE 2011 Debit Issuer Study - Oliver Wyman - May 2011
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute
24. Polling Question
24
©2011 DFS Services LLC Confidential and Proprietary Do Not Copy or Distribute