The retail giant is making its prepaid debitcard—offered with Green Dot Bank—available as a demand deposit account. That and its big store footprint could pose a threat to smaller banks in rural areas.
Card Payments. DebitCards.Debitcards have cemented themselves as the most preferred and most frequently used US payment method. After surpassing cash for the first time in 2018, debitcards comprised 30.3% of the average consumer’s transactions in 2019 and were cited as the most preferred payment method by 42% of Fed respondents in the same year.
Seamless in-app debitcard activation—as well as the ability to add a card to Apple Pay immediately after approval—can augment that speed advantage for neobanks. Thirty-five percent of respondents call debitcard activation "extremely valuable," and all neobanks offer it.
The card network enabled support for WEX Pay Cards, and its cardholders can now make instant transfers from Apple Cash—two moves that can help the issuer capitalize on rising retail spending as legislators mull new fee restrictions.