We’ve seen an increase around the world in digital banking and digital payments over the last few years. Some consumers openly adopted this new technology; others did so begrudgingly when the global pandemic required us all to distance ourselves from each other. Whatever the initial motivations were, today’s consumers now prefer simple, mobile-enabled payment experiences that make transactions convenient and secure, whether online or in-person.
Here’s some data to showcase what I mean:
- In a 2022 McKinsey report, 60% of respondents said they prefer to leverage mobile wallets for their digital payments. With an 80%-90% smartphone penetration, it’s no wonder Middle Easterners are seeking out seamless digital payment experiences (The Global Payments Report 2022, Worldpay from FIS).
- The African market has a very young population and is the leading region for telco payments. In fact, there were 296 million registered mobile money accounts in East Africa and 84% of internet users in Kenya and 60% in Nigeria regularly made payments with mobile phones in 2021 (Statista Global Consumer Survey). This further demonstrates that mobile payments meet the need for financial inclusion around the world.
Mobile wallet usage is increasing across all markets. Globally, digital wallets are accounted for nearly 49% of the value of e-commerce transactions in 2021, and accounted to reach 53% in 2025 (Worldpay Report 2022 by FIS). Offering digital payment options is a way for banks and credit unions to answer this demand, differentiate themselves, and be perceived as a modern and innovative leaders. If they don’t, they’ll be left behind and viewed as archaic and out of touch.
However, as banks and credit unions embark on their digital transformation journeys, security is a key concern. Cyberattacks are at an all-time high and growing more sophisticated day by day. Banks have to keep this in mind when selecting and implementing digital banking solutions. It’s a delicate balance between offering seamless digital banking and payment capabilities and keeping customer data, and money, secure. It may seem like a daunting task, but the key is to find the right technology solution provider. The partnership between CR2 and Entrust can help banks and credit unions achieve this balance. CR2 and Entrust work together to enable banks with digital payment experiences for their cardholders by offering contactless payments supported by tokenization capabilities The use of tokenization helps banks mitigate risks through the process of replacing sensitive card information with unique digital tokens. When using the digital card to make purchases, the token replaces the customer’s card information.
The ability to digitalize and tokenize payment cards within a banking app provides a seamless experience for cardholders when making contactless payments (tap and pay) in-store while providing secure transactions.
As a result of this technology alliance partnership, CR2 customers (banks) can offer digital payment experience, meet the demands of their customers, and be perceived as innovative leaders in the financial industry. This can increase customer satisfaction, attract new customers and drive growth for the bank.