Now here's a report that says what I like to hear! Looks like PIN Debit will become the "signature product" for consumers when conducting "online transactions." By 2010 according to this author.
So I guess it comes down to whether consumers would prefer a guaranteed 100% end-to-end 3DES DUKPT encrypted (Zones 1-5) application such as HomeATM's...
or a platform that is already proven to subject consumers "primary account numbers" to hackers (by "typing" their card numbers into a box on a website) and could very well likely expose their PIN's. How motivated would cybercriminals, who consider stealing PINs to be the "Holy Grail" of financial data, be to get their hands on PINs?
I've already placed my bets on which one will prevail over the long haul...
PIN Debit on the Internet will spell the demise of Signature Debit
August 10, 2009
Summary
Signaturedebit remains a payments alternative only because there still is no PINdebit product on the Internet. Also playing into the picture is thatIssuers prefer Signature Debit due to higher Interchange rates. On theotherhand, merchants, acquirers, and consumers are in favor of PINDebit.
Analysis
PINdebit continues to grow despite the marketing efforts of Card issuerswho actively market against PIN debit in favor of Signature debit. (Who but bankers would spend marketing dollars demoting one of theirown products?). PIN debit is preferred by merchants and consumersbecause of percieved security, cash back availability, speed at thePOS, and less cost to the merchant. Once we have a viable PIN debitproduct on the Internet, we will see a real growth spurt in PIN overSignature. And, by the way, we should see PIN on the Internet by theend of next year, 2010.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
