Newcastle Building
Society will be the first UK card issuer to roll out MasterCard’s
innovative digital display debit card. Kriya Patel, head of the
society’s Card Solutions department, tells Douglas Blakey he wants
to see the digital display card extended to the prepaid market as
soon as possible.
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Newcastle Building Society (NBS),
the UK’s eight-largest society by assets, will be the first card
issuer in the country to roll out MasterCard’s digital display
debit card.
While the display debit card works
like any other payment card, it represents a first in the market by
featuring a small display window and touch-sensitive button.
The cardholder can see information
– numbers and/or text – on the small visual display, such as a
dynamic passcode, an account balance and a spending limit.
MasterCard has been working on
display card functionality on cards for over a year and believes
that the technology – supplied by Swiss-based security specialist
NagraID Security – has now matured to a level appropriate for use
on MasterCard-branded cards.
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By GlobalDataTurkish bank TEB, a subsidiary of
BNP Paribas, was the first issuer to bring the display card to
consumers with a Maestro e-commerce authentication programme that
kicked off in July across Turkey.
In the UK, NBS will be the first to
launch the card, via its Card Solutions Division, which it set up
in 2005. It currently acts as the issuing bank for over 200
innovative prepaid and debit card programmes, enabling the society
to punch well above its weight in the cards sector.
These programmes range from
non-reloadable gift card programmes through to fully reloadable
online and instant issue prepaid cards for personal spending,
payroll, employee incentive, money share and travel.
Such has been the success of NBS’
cards unit it has grown to become the premier provider of
MasterCard-approved card programmes in the UK market.
Picking the right
partner for success
Kriya Patel, head of the society’s Card Solutions department,
told RBI he is keen to get digital display to market as
soon as possible.
“I have identified the correct partner – a MasterCard debit card
issuer with 100,000 cardholders – and am keen to get this up and
running, but MasterCard will drive the lead times,” he added.
Patel said a pilot programme
involving around 2,000 cardholders, running for around three
months, would be most beneficial.
“To get the key findings, the pilot
programme should include the busiest period of the year for card
use, around Christmas,” Patel said.
Of particular interest will be
measurement of customer satisfaction and whether cardholders
perceive additional value from using such a card.
Spending patterns will also be
monitored as will the card issuers cost of customer service.
“It will be interesting to see if
there is any drop-off rate in cardholders making balance enquiries,
though it may generate a different type of query,” Patel said.
“I see this as a
product that can support more than the debit market, such as the
prepaid cards sector, though debit will be good as a learner.
“I already have four prepaid
clients keen to get [digital display] to market.”
While there will be cost
considerations which may reduce the attractiveness of digital
display to MasterCard for the prepaid market, Patel argues the cost
is one that can be recovered from cardholders.
“By giving things away, issuers may
devalue the product,” he said.
“It is down to our clients how they
would do it, but I can see scope for digital display prepaid cards
being branded as an exclusive or VIP card.”
Sectors where Patel believes such a product can succeed include
travel prepaid cards and expenses cards.
