There are many ways for Brazilian issuers to improve debit product and portfolio performance:

• Conduct behavioral segmentation using customer transaction data to better understand consumer payment preferences and tailor value propositions accordingly.
• Concentrate on increasing loyalty among heavy users by rewarding desirable behaviors.
• Focus on younger and more educated consumers, who have a higher propensity to change their behavior.
• Identify merchant category expansion opportunities for light and moderate users by using transaction data to determine the next logical merchant categories.
• Educate consumers on debit card security and liability features such as safety, practicality, and ease of use to overcome barriers to adoption and stimulate usage.
• Manage and monitor debit card portfolios closely to ensure profitability targets by segment are being met.

1. Issuer and acquirer websites, BIS/CPSS, and European Central Bank, 2010.