Consumer brands are constantly seeking innovative ways to strengthen customer relationships and build loyalty to drive long-term revenue. While co-branded credit cards have long been a staple of consumer brand loyalty programs, a significant opportunity has up til now remained largely untapped: co-branded debit cards. 

But with recent advances in service models and technology, brands now can more easily offer loyalty reward programs to debit card users, opening the door to a vast new consumer base that either prefers debit or lacks access to credit. 

Galileo Enables Brands to Offer Co-Brand Debit Rewards Cards

Read on to explore why launching a co-branded rewards debit card could be the right move for your brand to enhance loyalty and engagement and build new, long-lasting customer relationships. 

The Untapped Debit Market: A Massive Opportunity

The numbers speak volumes: more than 90 percent of U.S. adults have a debit card, and those cardholders’ total annual spending volume exceeds $4 trillion, according to the Federal Reserve Bank of Atlanta. And yet, despite this enormous transaction volume, debit users have historically been excluded from the rewards ecosystem that credit card holders enjoy. 

Furthermore, approximately 45 million U.S. adults either lack a credit history or have minimal credit activity–and thus are shut out from earning rewards on everyday purchases and significant expenditures like travel.

This presents a substantial untapped market for brands looking to expand their loyalty programs and capture additional customer spend. By extending rewards to debit users, companies can engage with consumers who:

• Prefer the financial discipline of spending only the funds they have on hand

• Are younger or newer to financial services

• Want to earn rewards without the risk of credit card debt

• Don't qualify for credit due to limited credit history

• Use debit as their primary payment method for budgeting or other purposes

For brands, this represents not just a new customer acquisition channel, but a way to deepen relationships with existing customers who may already be loyal to your brand but must or prefer to use debit cards for their purchases.

Why Brands Should Consider Co-Branded Debit Programs Now

1. Increased Accessibility and Market Reach

Co-branded debit cards democratize rewards programs by making them accessible to consumers regardless of credit history. This inclusivity allows brands to connect with segments of the population they previously couldn't reach through traditional credit-based loyalty programs.

For travel and hospitality brands particularly, this means engaging with younger travelers and budget-conscious consumers who prioritize experiences but prefer to pay with debit. By removing the credit requirement barrier, brands can significantly expand their loyalty program's reach.

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The implications for customer acquisition are substantial. According to industry data, Gen Z consumers are more likely to use debit cards than credit cards, with many citing debt avoidance as a primary motivation for that preference. By offering rewards through consumers’ preferred payment method, brands can capture loyalty early among this high-potential consumer segment.

2. Enhanced Customer Loyalty and Engagement

Loyalty programs are effective because they create tangible value for consumers while fostering connections with brands. Co-branded debit cards extend this benefit to debit users, creating daily touchpoints with your brand every time a particular cardholder makes a purchase.

When customers earn rewards for everyday spending that they can redeem for your products or services, research has shown that they're more likely to:

• Choose your brand over competitors

• Increase their frequency of purchases

• Recommend your brand to friends and family

• Engage with your broader ecosystem of products and services

This continuous engagement cycle helps transform occasional customers into brand advocates. Unlike traditional advertising that interrupts consumer attention, rewards programs integrate the brand into the customer's daily financial life in a way that is natural and provides mutual value.

For hospitality brands specifically, a co-branded debit card can help maintain customer engagement between bookings or visits. Rather than losing touch with customers until their next travel need arises, brands can stay top-of-mind through regular card usage and rewards accumulation.

3. Valuable Customer Data and Insights

Perhaps one of the most underrated benefits of co-branded payment cards is the wealth of customer data they generate. With proper consent and privacy controls, brands can gain valuable insights into:

• Customer spending patterns outside your direct offerings

• Complementary product and service interest 

• Geographic distribution of customer spend

• Seasonal purchasing behaviors

• Lifetime value potential of different customer segments

These actionable insights enable more personalized marketing, targeted promotions and strategic partnerships that further enhance the value proposition for both consumers and brands. 

For example, a hotel chain might discover that their loyalty members frequently spend at particular restaurant categories or entertainment venues in the months before travel. This information could inform new partnerships, package offerings, or localized recommendations that enhance the overall customer experience.

The first-party data advantage becomes increasingly valuable as third-party cookies phase out and privacy regulations tighten, making owned loyalty programs even more strategically important for brands.

4. Accelerated Time-to-Market

Traditionally, launching a co-branded card program could take more than a year, and require a significant commitment of time and resources. However, technological advancements have drastically reduced this timeline. For instance, Galileo Financial Technologies now offers a co-branded debit rewards platform that cuts implementation time to just a few months.

This accelerated time-to-market allows brands to:

• Respond more quickly to market trends

• Test and iterate program features based on customer feedback

• Generate program revenue sooner

• Gain competitive advantage through faster innovation

The reduced implementation timeline also means brands can align card launches with other strategic initiatives, seasonal campaigns, or product introductions, creating synergistic marketing opportunities that weren't previously possible due to lengthy development cycles.

5. Streamlined Technology Implementation

Modern financial technology platforms have simplified what was once a complex integration challenge. Brands can now access integrated solutions that include card issuing, processing, and program management without juggling multiple disconnected systems.

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Galileo's co-brand debit program, for example, provides a comprehensive technology suite that handles the backend complexity while allowing brands to focus on creating meaningful rewards and customer experiences. This streamlined approach reduces both implementation costs and operational overhead.

The technology evolution also enables more sophisticated features like real-time rewards notifications, personalized offers based on spending patterns, and seamless integration with mobile apps and digital wallets—creating a modern, digital-centric experience that meets today’s consumer expectations.

Industry Focus: Hospitality and Travel

While brands in any sector can benefit from debit rewards programs, the hospitality and travel sectors stand to earn particular gains from such programs. Here are a few reasons why:

• Aspirational Rewards: Travel experiences are highly motivating rewards that drive spend across all purchase categories

• Frequency Building: Rewards programs can increase booking frequency and combat the commoditization of travel services

• Expanded Customer Base: Access to younger and debit-preferring travelers who might otherwise book through budget-focused channels

• Enhanced Guest Experience: Integration between payment cards and loyalty programs creates seamless guest experiences

• Ancillary Revenue Opportunities: Drive awareness and bookings of additional services like dining, spa treatments, or excursions

As the first to bring this type of program to the U.S. hospitality sector, Galileo's offering represents a significant opportunity for hotels, airlines, and travel services to differentiate themselves in the highly competitive markets in which they operate.

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The timing is particularly advantageous as travel continues its post-pandemic recovery. With consumers eager to make up for lost experiences but potentially more budget-conscious than before, debit rewards programs offer a way to capture spend from travelers who are seeking to balance experience desires with financial responsibility.

Implementation Considerations for Success

For brands considering a co-branded debit program, several factors contribute to successful implementation:

1. Clear Value Proposition: Ensure rewards are meaningful and aligned with your brand experience. Generic rewards programs don't create differentiation—the best programs reflect the brand's unique offerings and values.

2. Seamless Integration: Connect the debit program with existing loyalty systems for a unified customer experience. Customers expect consistency across all brand touchpoints.

3. Mobile-First Design: Prioritize digital wallet integration and mobile app accessibility. Modern consumers expect to manage their rewards and payment methods through their smartphones.

4. Transparent Communication: Clearly explain program benefits without the complex terms often associated with credit products. Simplicity and transparency build trust with debit-focused consumers.

5. Strategic Partnerships: Consider partnerships that extend value beyond your core offerings. The right partnerships can create a more compelling ecosystem of rewards and benefits.

6. Responsible Data Practices: Implement strong data governance and transparent privacy practices. Customer trust is essential for program adoption and long-term success.

The Future of Brand Loyalty

As consumer preferences continue to evolve toward financial wellness and spending consciousness, co-branded debit rewards programs represent the next major opportunity for brands to build customer loyalty and durable long-term revenue. By extending rewards traditionally reserved for credit to the vast debit market, brands can build stronger connections with a broader customer base. 

And with new technology platforms reducing implementation barriers, there's never been a better time for brands to explore how co-branded debit cards can complement their existing loyalty strategies. Those who move quickly in this space—particularly in sectors like hospitality and travel—have the opportunity to capture significant market share and build lasting customer relationships.

Contact us to learn how Galileo can help your brand drive loyalty by tapping the $4 trillion debit rewards market.