How to serve customers better at the point-of-decision ft. Galileo’s CEO Derek White

While co-branded credit cards have dominated consumer wallets for decades, a new option is emerging in the payments landscape. Co-branded debit cards represent an untapped opportunity for brands to deepen customer relationships while addressing the preferences of a generation that increasingly chooses debit over credit.

Derek White, CEO of Galileo Financial Technologies, has been at the forefront of this shift. Under his leadership, Galileo recently powered Wyndham Rewards’ launch of what’s being called the industry’s first co-branded debit card in the US. “The opportunity is huge here, where we have customers that have a deep loyalty with the brand,” White explained. 

The timing for this launch is strategic. 30% of customers are pulling out debit cards when making purchases at major travel and entertainment brands, “even though they’re not getting rewards associated with it.” This value gap represents millions of transactions where brands could be deepening customer relationships but aren’t.

Listen to this Tearsheet podcast episode with Derek White to learn about how co-branded debit cards are creating new monetization opportunities for brands, what consumer behaviors are driving this new product, and how the convergence of AI, blockchain, and quantum technologies might fundamentally change how money moves through payment systems.

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The debit user evolution

The profile of debit card users is more nuanced than traditional banking assumptions suggest. Two primary segments drive debit usage, according to White: those who want to build credit but may not qualify for traditional credit products, and consumers who simply prefer not to expose themselves to credit risk.

“The younger generations are preferring to use debit more than we’ve seen in the past, and not wanting to build up a credit balance,” White observed. This behavioral change creates opportunities for brands to engage with customers who have been underserved by traditional co-branded credit offerings.

The scale of this market is substantial. With 90% of US adults holding debit cards and 46 million people lacking established credit profiles, the addressable market for co-branded debit products extends far beyond traditional credit card demographics.

From point of purchase to point of decision

White reframes the traditional concept of point-of-sale interactions, emphasizing instead the “point of decision” where consumers choose their payment method. The changed framing can serve as the foundation for significant opportunities for brand engagement.

“Interactions are the currency of loyalty,” White emphasized. “Interactions are the ways that brands can monetize their experiences with their customers,” he added. When brands understand that a significant portion of their customers prefer debit at this decision point, they can design products that capture previously unrewarded spending while keeping the technical and resource lift relatively low. Wyndham moved from signing to launch in less than 90 days.

The rewards economy expansion

The US market’s appetite for rewards programs creates natural synergy with co-branded debit offerings. White noted that major brands and issuers have recently increased annual fees on credit cards “because of the value that’s associated with spending on a card.”

“We’re a rewards economy. We love rewards. It’s so deeply ingrained into the psyche of every American,” White explained. Co-branded debit cards extend this rewards ecosystem to consumers who previously couldn’t or wouldn’t participate through credit products.

The value proposition becomes particularly compelling for brands with established rewards programs. Rather than building new loyalty infrastructure, these brands can extend their existing programs to serve segments that previously remain unengaged.

Implementation approach for the new and the experienced

For brands considering co-branded debit offerings, White emphasizes a customer-first approach to product development. “Start with understanding the customer: how the customer interacts with you, with the brand. Understand the value of the customer and what the customer wants in way of interaction and reward for that interaction.”

This implementation approach will vary based on how mature a brand is and how sophisticated existing rewards programs are. Established brands with decades of rewards program data can extend existing infrastructure, while emerging brands may use co-branded debit as a foundation for building more customer loyalty programs.

White also sees interest extending beyond the obvious travel and entertainment sectors where Wyndham operates. “It’s really any brand that wants to create loyalty and wants to create a rewards [program] and increase their interactions and monetization opportunities with their customers,” he noted. 

The competitive dynamics also favor early movers. Once one brand in a sector launches a co-branded debit offering, competitors typically follow, creating market-wide adoption patterns similar to those seen with credit cards.

Infrastructure evolution and emerging technologies

White’s experience spans traditional banking, big tech, and fintech infrastructure giving him a unique understanding of how payment systems are evolving. The transition from disconnected legacy systems to interconnected, API-driven platforms is enabling new product possibilities.

“We operate in an open ecosystem where everything connects with high speed APIs … enabling the exchange of value, dollars, money, tokens,” White described. This infrastructure evolution makes co-branded debit products technically feasible and economically viable.

Looking forward, White identifies three technologies that are likely to reconfigure how people pay: AI, blockchain, and quantum computing. “The intelligence of the speed of money is going to be changing the way that payment infrastructure works,” he explained. 

This convergence should enable “intelligent payments at speed” that will create new forms of brand-customer interactions.