How to Capture Top of Digital Wallet

credit cards on a smartphone
By Amanda Glincher

4 minutes

Card features make a difference in consumer choice of card and spend.

Sponsored by OnDot Systems

With all the ups and downs of 2020, the one consistent thing was the adoption of digital. From online shopping to contactless purchases, the banking world saw a huge spike in digital payment adoption.

With the increased demand, offering digital experiences for cards is more important than ever for credit unions that want to capture top-of-wallet status in both the physical and mobile wallet. With payments being the most frequent interaction that members have with their financial institutions, capturing preferred card status allows credit unions to maintain a strong financial relationship and be present for their members during all their purchases.

Card offerings can make all the difference in retaining cardholder spend and maintaining top-of-wallet position. Consumers make card choices based on a variety of reasons—from rewards to loyalty to available funds. Research conducted by Ondot via a 2020 field poll shows that convenience and spend transparency are the top two factors when considering a debit card, and No. 2 and No. 3 for credit. A large part of convenience and transparency fit into the card experience—from the ease of access, to control and insights into spending. All of these tools factor into the cardholder experience and how a card is chosen to be top-of-wallet.

A recent Deloitte study showed that 84% of digital transactions are made with the default card—equating to a lot of transactions that you’ll definitely want to capture.

Becoming the default card requires a strategy, including:

  • Offering immediate digital access to new cards
  • Enabling push-to-wallet capabilities so cardholders can easily add your card to their pay wallet of choice
  • Making any rewards or offers clear from the start so the value is obvious

Provide Clear Spend Insights

Consumers are increasingly cautious about their finances and spending clarity is a way that credit unions can provide members with confidence. The often difficult-to-understand transaction reporting that is seen on a statement—what Mastercard refers to as “gobbledygook”—makes it hard for cardholders to understand their transactions.

With transaction enrichment, the data is clean and clear. This provides members with the accurate merchant name, logo, location and contact information for each purchase. This level of detail both increases the members’ experience and reduces account of friendly fraud—creating a more satisfied cardholder and reducing unnecessary chargeback fees.

Offer Temporary Card Numbers

One of the reasons card holders previously leaned on credit cards was the simplicity of shopping online and dealing with fraud should it occur. With debit, concerns of fraud are escalated since the dollars are directly removed from one’s liquid assets. While online purchases have become more secure in recent years, fraudsters are forever evolving, and consumers need to be confident that an online purchase won’t result in a drained bank account.

Help provide your members with this security by giving them the ability to generate one-time card numbers for each online purchase—making it easy for them to shop confidently online and easy for you to retain that trusted status.

Make Self-Service Simple

When was the last time you bragged about how much time you spent on hold with your financial institution? If your mind is turning up blank, that’s because no one enjoys waiting on hold. With customer service times increasing by hours during some months of 2020, consumers need a better way to make simple changes.

By providing members with access to in-app card controls, basic functions like applying for an account, reporting a card lost or stolen, receiving a new card instantaneously, providing push-to-wallet capabilities for contactless spend, and setting controls and alerts are available to them without a wait—and at all times of the day and night.

Make Digital-First Available for Credit and Debit

The features of a digital-first card are essential, but they are also necessary for credit and debit. With the release of the Apple Card in 2019, the world was wowed by the easy application experience and simplified interface. But the Apple Card is just one credit card, and today’s consumers want to be able to choose not only who they bank with, but which card they use. Providing a modern card experience for both debit and credit is essential in meeting members’ needs.

So much of the banking relationship is about convenience and confidence. Provide members with the features that make it simple for them to interact with cards and your card will quickly become the preferred choice in all wallets.

Amanda Glincher is part of the team at Ondot Systems, San Jose, California. Driven by a motivation to bring more accessibility to people in all areas of life, Glincher’s 17 years of marketing experience include both the non-profit and tech sectors. When she isn’t developing marketing programs, she can be found baking with her children or noodling over a puzzle.

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