Interac's "Debit Is Better" Positioning How many times a day do you tap your debit card to pay for a coffee or a slice of plaza? All bank cards in Canada come with Interac functionality, and Canadians have widely accepted Interac Debit and Interac Flash as an important form of payment. In fact, the Interac network processes 54 percent of all card payment transactions (that includes all credit cards combined) This equates to an average of 12 million transactions daily across Canada Unlike the debit network used in other countries, Interac in Canada is a not-for-profit association, created through a partnership between the five major banks in Canada that strove to create a network to give people more extensive access to their money. Even though everyone uses it,consumers are at a loss to explain Interac or its benefits. Competitive threats as well as changes in consumer attitudes to spending compelled Interacto better define its position in the minds of consumers and create a meaningful point of differentiation Competition: The number of players in the card-payments market was increasing. There were more specialized services such as PayPal and Square, prepaid credit cards from Visa and MasterCard, and the launch of VISA debit. All of these new players created confusion in the minds of consumers. Customer attitudes: Consumers were more inclined to use credit cards for everyday essentials such as groceries in order to cam points or cash back. While collecting points, consumers are also collecting increasing levels of debt with household debt levels in Canada reaching record levels. Credit Cards Interac Bills and interest Easiest and most familiar payment method Go into debt with every No bill purchase No interest Heavy use and debt creates Consumers feel on top of their money when anxiety using Interac The resulting positioning for Interac was based upon image as well as product attributes and resulted in the following differentiator: "Life feels better when you use your own money. "Interac's unique product attribute is that you are accessing your own money for payment rather than using credit. In addition, Interac is creating an emotional connection with the consumer as the card that puts the consumer in control and confident of their finances Interae anchored this positioning in a key slogan, "Be in the Black," which has become a memorable phrase that speaks directly to Canadians to be financially responsible Questions 1. How did consumer attitudes about spending help Interae reposition its brand? 2. How can a financial service such as Interae create an emotional connection with the