Unlike other online PIN-based transaction services that use third party websites to collect payment data, PULSE's solution uses a plug-in technology that integrates into a retailer's existing checkout process. Usability research indicates that keeping customers on the same website enhances trust, resulting in fewer abandoned transactions.
Although the online PIN purchasing system may initially appeal to consumers holding ATM-only debit cards, PULSE's new offering may include side benefits for its parent company, Discover Financial Services. Discover Card and a handful of credit card issuers already offer cash advances using PIN-based retail and ATM transactions. Rolling out linked, PIN-based transaction cards can help assure cardholders of online security while building product loyalty.
About the Author
Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.