The news: Discover relaunched its debit account service, CEO Roger Hochschild said at a Bernstein investor conference, per Payments Dive. The service includes a checking account and a debit card that offers cash-back rewards.
Discover will ramp up marketing efforts for the debit accounts later in 2023 after an unspecified “soft launch” period, per Hochschild.
How we got here: Discover stopped accepting applications for its digital checking account last summer due to fraud issues, just months after the product went live. At the time, Hochschild said the fraud issues were manageable and the service would relaunch with more advanced capabilities.
Why this could gain traction: Debit rewards could yield strong growth for Discover.
Debit cards reign supreme over consumer spending: Total US debit card transaction value will hit $3.207 trillion in 2023, per our forecast, making it the most popular payment method. This creates a massive opportunity for Discover to capture volume.
Leftover problems: Despite the appeal of a rewards-based offering, Discover’s debit card problems haven’t gone away.
Dig deeper: Read our report on “The State of Payment Methods” to learn more about emerging debit card trends.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.