Consumers are looking for greater convenience in payments, and digital wallets 
are clearly on the rise. For credit unions, the question is – How can you best capitalize on this opportunity, while supporting your members’ evolving payment needs?
As traditional methods of payment like cash, checks and even physical cards decline, and digital payments are becoming more commonplace and accepted by all generations, credit unions need to offer those digital solutions their members want and need. Otherwise, they risk continuing to lose primary financial relationships and market share.
The key is to offer solutions that allow members to continue using their preferred credit union payment methods within their favorite digital applications, while providing the unique personalization, outstanding service and customized advice that credit unions already do so well.
The digital payment landscape is constantly changing, and it now includes digital wallets, P2P and contactless. Credit unions need to be in the game, and it can’t be a “pick and choose” proposition. They must be able to support the preferred payment methods of all their members, or they risk losing them to attrition, one micro segment at a time.
Push to wallet is the fundamental solution that credit unions must have on their roadmap to ensure they don’t lose members to the competition. According to research from Experian, the typical consumer has 3.84 credit cards, plus at least one debit card. Yet most digital wallet users will only keep one or two cards in their app. This creates a Darwinian battle for top-of-digital-wallet status.
Push to wallet allows issuers to automatically “push” a member’s debit or credit card credentials to their preferred wallet apps, instantaneously. This is particularly important when a card is lost, stolen or expired – a key point of disruption. If the cardholder loses access to their preferred form of payment within their wallet app, they will switch to another card – often permanently.
A related solution to push to wallet is digital card issuance, which provides members with access to their debit and credit credentials instantly. DCI empowers the member to begin using their card right away for digital wallet and online purchases while they wait to receive their physical card. DCI is another critical tool within credit unions’ digital payment toolkit, as the longer it takes for a member to receive their physical card in the mail, the lower the chance they will activate it.
The expanding universe of digital payments can seem overwhelming. To be their members’ first choice in payments, credit unions must offer a range of digital solutions, including contactless cards, P2P (through Zelle), as well as push to wallet and digital card issuance.
But if your credit union is just starting your digital journey, you don’t need to implement all these solutions at once. You just need to have a well-planned strategy for getting there.
“We recommend a phased approach to introducing new digital solutions,” says Michael Ruetten, Vice President, Product Management-Pay Products at Co-op Solutions (www.coop.org). “It’s best to tackle one major digital project each year, and budget your staff, resources and investments accordingly. This way, you won’t bust your annual technology budget, and your staff and members will stay excited about the latest capabilities on the horizon.”
Co-op Solutions can your credit union along your digital payment journey, and offers a full suite of digital solutions, including contactless cards, Zelle P2P payments, digital card issuance – and coming soon in 2023 – push to wallet.
In the meantime, make sure to analyze your member payment data to identify and capture new opportunities to grow your payment portfolio. Then target dormant cards for activation through low-rate balance transfer promotions, and higher usage through special “spend and get” campaigns.
