First it was music, then photos and watches, and now it’s payments. The smart phone continues to disrupt and reinvent the way we go about our daily lives, including how we pay for things. Great for consumers, but the highway side of mobile devices is littered with “Kodachromesand “Walkmans,” so financial institutions (FIs) should take note. Rest assured that physical cards aren’t going away anytime soon. The number of payment cards in circulation around the world increased by 2 billion between 2019 and 2021 and is expected to increase further. But digital maps are here to stay and are often preferred by the millennial cohort now entering their peak earning and spending years.
Digital cards have many benefits for FIs, including reduced card activation time, reduced issuance and customer service costs, and reduced risk of fraud through tokenization. Then there’s the benefit of increased cardholder engagement and revenue. It is therefore not surprising that many FIs already offer or plan to offer a digital card solution in the near future. But before jumping in with both feet, it’s important to understand the different digital map solution options, and the relative merits of each.
The three main types of digital cards that FIs can choose from are:
- Manual provisioning – where the IF allows consumers to manually fund their physical debit or credit card in an “xPay” mobile wallet (Apple Pay, Google Pay).
- Automated push provisioning from a standalone app – which “pushes” payment credentials (virtual and/or physical card-based) into an xPay wallet.
- Activation of payment in the banking application – which allows consumers to make payments directly within the FI’s mobile app, as well as in-app value-added features such as card checks and transaction management.
The first option, manual provisioning, requires the consumer to go through an error-prone, multi-step manual provisioning process that can hinder digital card adoption, thereby jeopardizing cardholder revenue. The second option, automated push and provisioning from a standalone app, removes this friction with the automated push provisioning of payment information directly into the consumer’s mobile wallet for an exceptional customer experience. However, with these two options, the FI brand “disappears” in an xPay branded wallet (i.e. Apple Pay, Google Pay). This could make the FI vulnerable not only to disintermediation by its own customers, but also to disintermediation by an aggressive new competitive set.
Enter option 3 – in the banking app payment activation. This option provides a superior customer experience directly within the mobile banking app, including Click-to-Pay, automated xPay provisioning, token management and card checks. Best of all, consumers have the ability to make payments directly within the mobile banking app, so no need for the FI to send their customers anywhere else! That’s the power of the Entrust digital card solution.
Learn more on enabling the first transparent digital payments with Entrust.
The post Thinking Digital Maps? Don’t be the next Kodachrome or Sony Walkman camera that appeared first on the Entrust blog.
*** This is a syndicated Entrust Blog Security Bloggers Network blog written by Jenn Markey. Read the original post at: https://www.entrust.com/blog/2022/06/thinking-digital-cards-dont-be-the-next-kodachrome-camera-or-sony-walkman/