Shifting the volume of consumer payments from cash to debit is a migration, not an event.

It happens incrementally over time. Issuers who expect a magic formula for consumer adoption of electronic media at the point of sale (POS) will largely be disappointed.

Issuers are better advised to adopt a targeted approach focused on moving those consumers who are ready to engage in electronic payments up the migration curve. In MasterCard’s view, this means a marketing program based on segmentation.

By enlarging the acceptance network while at the same time encouraging more widespread consumer use of debit cards (and to a certain extent credit cards), issuers have a good chance of increasing their debit business. In our experience in markets around the world, this is far more efficient and effective than embarking on a never-ending cycle of consumer education and advertising.

1. Euromonitor, 2009, AFIP website, MasterCard.