Offer a better cardholder experience with payment technology and collaboration
Facing increasing competition and continued disruption, today’s financial institutions need new ways to stay relevant and retain their cardholders. Three things to consider are contactless payments, collaboration, and the cardholder experience.
To facilitate contactless payments, institutions need to address their merchant customers’ specific needs and collaborate with their mobile banking partners and technology vendors to meet those needs. While some merchants are still getting up to speed with EMV terminals, others are jumping on new technologies including PIN-less payments, QR code readers, and biometric IDs.
Differentiating your institution
All new technology has a learning curve. When rolling out any payment type, institutions should educate their cardholders to help reduce confusion and smooth the transition. With EMV and contactless payments, Worldpay recommends that financial institutions give cardholders information about when to swipe, dip, or tap their cards.
Providing cardholder education and support for new payment types can help financial institutions differentiate themselves and stay involved in their cardholder’s everyday payment experiences. Making this a priority adds to the lifetime value of cardholder relationships and reduces disruption that can lead to cardholder attrition.
To support the rollout of new payment options, institutions should also develop strategies for both physical and digital cards. It’s important to consider the payment devices cardholders are using. For example, they may be using their watch, car, or virtual assistant to make purchases.
Timing is another consideration. Institutions should determine when their competitors are issuing new cards for NFC terminals, and act accordingly.
Security is another important factor, particularly with the explosion of eCommerce. To provide additional security on card-not-present transactions, Worldpay has introduced Motion Code debit cards. Instead of a static CVV code, Motion Code features a regularly changing CVV code which renders card data stolen in data breaches useless. There’s been a lot of interest in this technology among issuers whose cardholders do a lot of online shopping.
The next big thing connecting payment and mobile applications may be instant digital issuance. When a credit or debit card is lost or stolen, the issuer can send a new “card” (basically the account number) to the cardholder’s digital wallet along with the option of a physical card. Worldpay offers this service as a way for cardholders to keep their primary payment accounts open, secure, and ready at all times.
Collaboration is key
A lack of payment industry standards in the US and the accompanying disruption and fragmentation can lead to a very chaotic experience for consumers. Merchants are always looking for the most robust system at the lowest cost, while card issuers are focused on security.
Disruption usually leads to new and better technology, even if it sometimes comes at the cost of loyalty. However, financial institutions that offer more robust products and services are more likely to retain cardholders. With much of this technology coming from a payment processor or other third party, it’s vital for financial institutions to continue to collaborate with technology firms.
To learn more about how you can improve your cardholder experience, give us a call.