Financial Insights Issues Report on the Controversy Over Online Debit
FRAMINGHAM, MA – FEBRUARY 19, 2003 – A new study released by leading independent research and advisory firm Financial Insights examines the growing popularity of online debit cards at the point of sale, analyzes how this trend is impacting financial institutions and provides advice on what these institutions can do to combat the dwindling revenue.
"We believe that the dominance of online debit is inevitable as long as it remains half as costly for merchants as offline debit," said Aaron McPherson, research manager in the Retail Financial Services Practice at Financial Insights. "We recommend that financial institutions get ahead of this trend now by taking an early lead and strongly supporting online debit. By doing this, forward-thinking financial institutions will garner a lion’s share of the growing revenue stream, thus offsetting slowing growth in the credit and offline debit card interchange."
The new report, titled "The Changing Point of Sale: The Controversy Over Online Debit" analyzes the reasons why online debit is growing faster than offline debit. The report profiles the pending lawsuit by Wal-mart and other merchants against Visa and MasterCard, examining what the implications will be for both parties depending on the outcome.
For more information on obtaining this report, please visit: http://www.financial-insights.com.
About Financial Insights, an IDC Company
Financial Insights provides independent research services to users and providers of financial industry technology. The company was formed in November 2002 by combining Meridien Research and the IDC Financial Services Advisory group. The Retail Financial Services practice offers four areas of focus: Payments, Channels, Customer Strategies and Wealth Management. The Capital Markets practice offers Trading Technologies and all aspects of Risk Management.
The Corporate Banking practice covers cash management, wholesale payments, trade finance, and small business banking. Each practice delivers reports detailing new issues and challenges and uses its knowledge to advise clients on technology related decisions. Financial Insights is an IDC Company, headquartered in Framingham, MA. Visit www.financial-insights.com for more information.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and
trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC’s customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world’s leading IT media, research, and exposition company.
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