- Consumers will increasingly select their financial institution on the basis of its mobile service capabilities.
- The powerful Apple brand, tokenization, and concern about security data breaches are driving high interest in mobile payments; financial institutions are jockeying to get their cards in the early phases of the competition.
- 100 financial institutions are currently offering Apple Pay, and another 700 credit unions and banks are in the next waves for release. An estimated 652,000 U.S. merchant locations are enabled with Apple Pay, which makes up $2 out of $3 spent on purchases using mobile-phone contactless payments.1
- MCX/CurrentC is an alternative choice in the mobile space to watch carefully. It’s owned and managed by retailers, such as Target and Walmart. With over 110,000 merchant locations, and with promotion and loyalty core to its offering, CurrenctC is coming to market this year with a new set of payment rails, a different approach to transaction acquisition (bar code), and a closed-loop system limited to the largest retailers.2
- What is important right now is for credit unions to be top-of-wallet and to view mobile payment services as an opportunity rather than a threat. If members are using their mobile phones to make payments, you want your card to be their first choice. Credit unions have a trust factor with their members, so talking about putting your credit union card top-of-wallet is a conversation your credit union can leverage now.
Synergent’s top priority is providing products and services that your members prefer to use. The mobile payments world may be turning as fast as a cyclone; we are here to monitor and communicate our perspectives to you.
2Aite report, Emerging Players in Payments Evolution and Disruption, January 2015