The Rise of Digital Wallets and Contactless Transactions
With a year of COVID-19 in the rearview mirror, consumers are starting to adapt and adjust their behaviors accordingly. No longer feeling the need to interact physically with many businesses, consumers are moving to more contactless methods for making payments and paying for goods and services. Financial Institutions have a unique position in all of this, providing the conduit for payments that are safer and more secure. These payments give choices to consumers that they haven't fully leveraged in the past. In particular, the rise of the concept of "Digital Wallets" can't be ignored and offers credit unions a unique opportunity to become "top of wallet" in new ways.
This month's issue of nxg|NOW is designed to help you become the subject matter expert on contactless transactions, with a simple introduction to the concepts of different types of digital wallets, and helpful security hints for those who have crossed over to digital payments and for those that are considering doing so.
Digital wallets and other types of digital payments are growing in adoption at an exponential rate, and are becoming more mainstream, especially for Millennials. A recent survey shows that 50% or more 18 - 38 year-olds say they use a digital wallet regularly, 40% of Gen Xers say they've used a digital wallet in the past year, followed by 17% of Baby Boomers. The main objective of this issue is to help you position your payment cards as your account holders' choice for powering their digital wallet, should they choose to use a payment app. Here are some key points to consider before publishing this information to your account holders.
Ensure that your credit and debit card products are compatible with today's most popular digital wallet providers. To delay this step means you risk being replaced by another financial institution's payment card as the "go-to" payment provider, or by the digital wallet platform itself. (think Apple Pay's Apple Card and the Google's Plex Mobile Banking Platform to be released later in 2021)
Position yourself as the subject matter expert on payment apps and digital wallets, and even encourage their use as a more secure means of utilizing your debit and credit cards without carrying them in a physical wallet. This messaging demonstrates that you are an institution on the cutting edge of the financial services landscape and will hopefully position your card as the default form of payment in your account holders' digital wallets.
Reinforce the security of your cards, your financial institution's card fraud monitoring and alerts, and the fact that your account holders have entitlement to nxg|PROTECT, the next generation in personal identity theft [monitoring and] remediation services available 24/7 to keep your account holder's identity and their financial future secure.
Keep up with changing functionality and advancements of digital wallet providers. Consider signage, web banners, or other means to let your account holders know that your payment cards can be the power behind their chosen digital wallet experience. If you can be the first to introduce your account holder to digital wallets and other forms of contactless transactions you will be forever in their memory as the institution that opened to the door to a new experience that by all indications may become the norm for financial transactions in the future.
One final note. Consider our nxg|SAVE program as a great way to introduce contactless transactions to your account holders to get the conversation started. With nxg|SAVE, your account holders can use a simple show-your-phone app at thousands of locations to instantly save cash on everyday items, whether for shopping, dining, travel, or entertainment. Using nxg|SAVE introduces the account holders to using QR Code technology without requiring a commitment to a digital wallet just yet. In this way nxg|SAVE can serve all generations. nxg|SAVE can be used both online and at a retail location with a digital wallet transaction, a traditional credit or debit card transaction, or a good ol' cash. And if coupled with nxg|MOBILE, which provides protection against the expense from stolen or damaged mobile phones, your account holders will receive significant additional value in their banking relationship with your institution. Ask your NXG Client Manager how you can add these additional cutting-edge programs, avoid all additional expense of adding these programs, and even generate new non-interest income at the same time.
The Rise of Digital Wallets and Contactless Transactions
Social Media Content
Post #1 - COVID-19 has caused a surge in the use of contactless payments. You can power your choice of digital wallet apps and stay safe at the same time with our <payment card name>. Ask us how! #YourProtectionPartner #ContactlessPayments
Post #2 - Have you thought about using a digital wallet but don't know where to start? Ask us for more information. #YourProtectionPartner #DigitalWallet
Post #3- Millennials, Gen Xers, and even Baby Boomers are all getting into the act, adopting either the regular or occasional use of digital wallets. Partner with <FINANCIAL_INSTITUTION> to power your digital experience and protect you from the effects of fraud. #YourProtectionPartner #DigitalWallet #IdentityTheft
Post #4 - With <EMBEDDED_ACCOUNT> you can save in-person and online all year long with our GPS-enabled nxg|SAVE app. Simply show your mobile coupon using your smartphone using the latest in contactless technology! #YourProtectionPartner #MobileCoupons #SavingsApp
Post #5 - Want to save all year long on purchases made online and in-store? As a <EMBEDDED_ACCOUNT> member, you have access to our nxg|SAVE app. With thousands of national deals and hundreds in your area, you can find savings wherever you go with GPS-enabled notifications. Find out more at <FI_WEBSITE>. #YourProtectionPartner #MobileCoupons #SavingsApp