Payments industry consultant, Todd Ablowitz of Double Diamond Group is quoted in a subscription-based article about Visa Canada announcing that Canadian Imperial Bank of Commerce will be the first financial institution in Canada to issue Visa-branded debit cards. Visa is entering the market following the implementation of a code of conduct for the credit and debit card industry by the Canadian finance minister.
According to Ablowitz, Visa is entering a market where PIN-debit dominates the small-ticket environment. However, the new Canadian code of conduct does not make the card networks’ entry into the debit marketplace very lucrative because it forces cooperation with Interac, but Visa and MasterCard are known for bringing innovation.
“It’s probably a good opportunity to drive faster adoption towards mobile payments,” says Ablowitz. Canadian consumers already are familiar with contactless technology because MasterCard led the charge in Canada with the expansion of its contactless credit card product, PayPass.
American Banker, October 20, 2010
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