"Perhaps the challenge that is first among equals surrounds the economics of delivering a rewards/loyalty program based on debit card transactions. This problem is one that MFDN strategies directly address, offering a clear opportunity for issuers and card reward program managers to refine their loyalty offerings to accommodate the shifting payments mix. Issuers who enhance their debit reward programs with merchant funded discounts enrich the payments value chain by accessing revenue streams that are supplemental to existing interchange revenue, and, in some cases, may actually offset the majority of the cost of the program."

David Fish, Senior Analyst