When a debit or credit card gets lost, misplaced or expires, you’re forced to navigate the same, tedious process: Apply for the new card, wait for approval, wait even longer to receive the card in the mail, and then finally activate the card.
But some people never have to navigate this process again and it isn’t because their cards don’t have an expiration date — it’s because they have access to digitally issued cards. So, instead of picking up a new card from your bank or waiting a week for one to arrive in the mail, digitally issued credit and debit cards arrive directly to your mobile wallet from your bank or credit union — instantly ready to use. These digital cards provide a convenient, flexible and secure method of payment, which is vital in today’s digitized banking environment.
For a better understanding of the banking and payment preferences of today’s financial institution customers, Entrust surveyed 1,350 consumers from nine countries. Our report, The Great Payments Disruption, takes a deep dive into the banking habits of consumers, highlighting opportunities for financial institutions to grow their customer base. One of the most significant opportunities for banks and credit unions is to provide digitally issued cards to customers — a flexible option that can help you stay a step ahead of the competition.
Digitally issued cards strike a balance between flexibility and security
Contactless payment methods have become a go-to payment method for consumers around the globe — respondents in six out of nine countries we surveyed selected contactless payment as a top preferred payment method. And while respondents across the board cited contactless credit/debit cards as their second most preferred payment method, contactless mobile pay was significantly less favored. In part, this could be due to a lack of digitally issued credit or debit cards, which only 53% of respondents said they’ve received from their bank or credit union in the past year.
This is a significant oversight from financial institutions considering the potential customer growth that could stem from digitally issued cards.
- Flexibility and convenience: Survey respondents cited flexible payment options as the top factor in choosing a bank or considering a bank change. Digitally issued cards help meet this demand by enabling customers to launch an account with a bank and instantly receive a ready-to-use card. The cards can be added seamlessly to a mobile wallet (e.g., Apple Pay or Google Pay) and enable you to pay on the go without having to use a physical card. Picture reaching for your credit card in the grocery store checkout line only to realize you left it at home. Now you have to run to the bank for cash or leave the groceries behind. The problem only becomes more frustrating if you lose your card. Scenarios like this can be avoided entirely with a digitally issued card. Offering digitally issued cards not only gives customers flexibility and convenience, but an additional payment option expands your card portfolio.
- Enhanced security: Today’s consumers expect secure payment options — it’s no longer just a nice-to-have. As banking becomes increasingly digital, 90% of respondents are concerned about the potential for banking or credit fraud. A digitally issued card provides layered protection against bad actors, including a secure, PCI-DSS compliant interface and the ability to instantly turn off a compromised account. Additionally, a user’s mobile device provides a convenient avenue for authentication measures which further protect the digital card. By highlighting the security capabilities of digitally issued cards, you can win over your current customers and attract new ones.
With more payment options and financial institutions to choose from than ever before, it’s critical to give your customers exactly what they want. Today’s consumers require flexible, convenient and secure payment methods — including digital options. Digitally issued cards check all the boxes. By investing in a digital card solution, you can meet consumer demand and achieve a higher customer lifetime value.
Download the full report for more insights
For a deeper dive into the state of the payments industry, download The Great Payments Disruption report. In the report, you can learn more about how financial services institutions can meet the evolving payment preferences and demands of today’s consumers.
Get in touch with our team today to learn more about how you can embrace the future of digital banking.