In the US market, the furniture group IKEA is putting payment choices into action at its stores. Encouraging debit usage is the latest step in steamlining checkout practices and reducing payment acceptance costs.
Ikea’s new Debit Card Advantage 1% coupon encourages consumers to pull out their debit card at the point of sale.
“Use your debit card at IKEA and you will automatically receive a coupon worth 1% of your total purchase. This coupon is valid at your next visit to IKEA and does not expire”
Furniture store tickets are not generally thought of as small ticket / cash replacement merchants – the more traditional role for debit. Ikea’s strategy reflects an overall consumer trend to increased debit card usage.
Demonstrating their active management of consumer payment choices, IKEA was an early mover in stopping the acceptance of personal checks (see “Retailer’s role in the demise of check”). Ikea continues to offer favorable payment terms for purchases over $1000 with 12 months free interest.