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
Signature
debit remains a payments alternative only because there still is no PIN
debit product on the Internet. Also playing into the picture is that
Issuers prefer Signature Debit due to higher Interchange rates. On the
otherhand, merchants, acquirers, and consumers are in favor of PIN
Debit.
Analysis
PIN
debit continues to grow despite the marketing efforts of Card issuers
who actively market against PIN debit in favor of Signature debit.
(Who but bankers would spend marketing dollars demoting one of their
own products?). PIN debit is preferred by merchants and consumers
because of percieved security, cash back availability, speed at the
POS, and less cost to the merchant. Once we have a viable PIN debit
product on the Internet, we will see a real growth spurt in PIN over
Signature. And, by the way, we should see PIN on the Internet by the
end 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.
