HSBC Decoupled Debit Program Expands with Pathmark

Here's a bit of news that ties in very nicely with an article I wrote for the upcoming November issue. HSBC has launched a decoupled debit card program where it issues debits cards for merchants so that consumers can earn rewards.Decoupled debit cards take the demand deposit account bank out of the debit card picture. Instead, decoupled debit programs like the HSBC program allow consumers to open a debit card with the merchant of their choice-not a bank. HSBC, as the issuer, is using the open debit card network by Tempo to process the transactions.

HSBC already had a deal with CVS pharmacies for the special loyalty debit card. Now, the bank announced that supermarket chain Pathmark is on board as well. According to the bank, the new Pathmark Advantage Payment Card enhances the current Pathmark Advantage Club card by providing a one-swipe payment process that also generates loyalty rewards.

According to a release, a pilot is planned for later this year at a select number of stores in New York. The Pathmark Advantage Payment Card program is being touted as the first of its kind for a major supermarket chain in the U.S. in that it combines loyalty and rewards with decoupled debit functionality all on one card. For Pathmark, the new card provides a cost-effective solution to reward loyal shoppers without having to make any changes at the point-of-sale or sacrificing any efficiencies in customer service.

The Pathmark Advantage Payment Card links a customer's Advantage Club card to their existing bank checking account, offering customers a convenient way to earn rewards and pay for purchases with PIN debit, all on a single Pathmark-branded card.

To read more on decoupled debit, see the November issue of BS&T!HSBC's merchant-based decoupled debit card program expands to Pathmark supermarkets.