Is Funding Really a Barrier to Co-Brand Debit?

(New York, NY) Co-brand debit cards continue to gain attention across the payments industry, but questions remain about whether they can achieve notable adoption in a market long dominated by credit. One commonly cited challenge is funding—unlike credit cards, co-brand debit programs require cardholders to actively move or maintain money in an associated account. Auriemma Group’s latest issue of The Payments Report examines how cardholders are funding co-brand debit cards today and finds that concerns about this potential barrier may be overstated.

Auriemma’s data indicates co-brand debit cardholders tend to have an easy time managing their account. From opening (75% easy), funding (75%), and linking to other bank accounts (70%), co-brand debit accounts appear to deliver a low-friction experience. For issuers and brands, this suggests that usability may be less of a challenge than driving initial interest and engagement.

“Cardholders most often link a direct deposit to their co-brand debit account, but transfer-based funding is utilized too,” says Jonathan O’Connor, Senior Manager of Research at Auriemma Group. “And most of those who do not currently hold a co-brand card say they would likely fund it the same way if they acquired one.”

Not only are co-brand debit cardholders funding their accounts, Auriemma’s research found that 43% would maintain a balance of at least $1,000 if their card offered 1% cash back on partner brand purchases, gas, and groceries, and 0.5% cash back on everything else. Additionally, nearly three-quarters would fund that account at least monthly, highlighting that the product could become a competitor to traditional debit.

“Funding co-brand debit accounts may be less of a barrier than expected,” says O’Connor. “Cardholders are not only open to a variety of funding methods, but many indicate a willingness to fund them regularly and keep substantial balances in these accounts. That suggests the bigger challenge for issuers and brands may not be getting money into the account—it may be creating a sustainable rewards proposition strong enough to motivate cardholders to make the account part of their everyday financial lives.”

Drawing on insights from recent issues of The Payments Report, Auriemma Group will be exploring these findings and more in a member-exclusive webinar Rethinking Co‑Brand Cards: Debit’s Emerging Role on June 24 from 2:00–2:45pm EST. The session will examine where co-brand debit fits within today’s payments landscape, why it is gaining momentum, and the key considerations for issuers and brand partners as they evaluate future program strategies.

Members interested in joining should email research@auriemma.group for more information.

Survey Methodology

The Payments Report

This Auriemma Group study was conducted online within the US by an independent field service provider on behalf of Auriemma Group (Auriemma) in April 2026 among 800 adult debit cardholders. The number of interviews completed for both is sufficient to allow for statistical significance testing among sub-groups at the 95% confidence level ±5%, unless otherwise noted. The purpose of the research was not disclosed, nor did respondents know the criteria for qualifying.