Credit Payments: Optimizing the Cardholder Experience in a Digital Age

​Is your credit card program keeping up with digital trends? Optimize for seamless, personalized member experiences.

by Phil Seely
 
Digital payments not only represent a significant percentage of online (69%) and in-app (60%) purchases in the U.S., but they also rose to 28% for in-store purchases in 2024 (McKinsey). This shift requires re-evaluating current payment programs to make sure they are meeting changing expectations and creating positive touchpoints. With credit card use reaching 35% in 2024 (WalletHub), credit programs are a good place to start this evaluation. In a financial landscape of seamless, instant, and personalized experiences, an optimized credit payment experience is the key to maintaining member satisfaction and loyalty for a successful, sustainable card program.

Seamless, intuitive engagement and accessibility
Optimizing the member experience requires seamless integration, easy access to information and intuitive digital interfaces. This includes utilizing real-time posting for transactions to help cardholders easily track and budget their spending. It’s also important to make other account information and card fees easy for cardholders to access, update and review on whatever digital platforms they use. Thoughtful organization of relevant information and placing it in top-level links, such as on a main navigation menu, is best practice.

Tool interfaces should also be intuitive to access and navigate. Evaluate your current platforms like your website for ease of use. Reviewing data that shows where visitors abandon your platform or how long it takes them to perform different tasks is important. You can also survey members to gauge how difficult they find certain tasks and gather feedback on the features or platforms they would prefer for managing their cards.

Nearly sixty percent of consumers now use digital wallets, so tokenizing your credit union-issued credit card is a vital optimization (Banked). Tokenization not only adds another layer of security cards, but it also gives members the option to add their cards to a digital wallet and seamlessly shop both in-store and online. Mobile apps offer a convenient, all-in-one solution for members to manage card payments, track spending, set payment reminders, receive fraud alerts, and quickly disable a card if it’s lost or stolen.

Personalization
Personalization takes optimization beyond a streamlined interface. It fine tunes the member experience so your credit card program fits seamlessly into each individual’s lifestyle.

While personalized service is where credit unions traditionally shine, digital technology can enhance it. Artificial Intelligence (AI) can answer commonly asked questions online via chatbots or make routine calls, such as card activation reminders, to free up staff so they can focus on handling more complex member issues.

Digital technology can also help in supporting personalized goals like financial wellness for cardholders. Indeed, research shows that fifty-nine percent of U.S. consumers prefer to have financial learning tools included in the banking apps they use (BMO). AI can aid in offering flexible repayment options based on patterns of income and spending for cardholders who opt in to this feature. It can also send personalized tips for responsible card management and help identify members who might be interested in debt counseling services or personal loans to consolidate debt from multiple credit cards.
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An on-going process for success
Optimizing is a continual process that involves implementing and testing new features, gathering feedback, and maintaining a pulse on emerging payment technologies to ensure your credit card program remains relevant to changing member needs. By harnessing new technology to securely streamline and personalize your credit card related services, your credit union can create more opportunities to nurture strong member relationships and a healthy portfolio in an ever-changing payments landscape.

At Envisant, our mission is to help credit unions compete and to provide credit unions with a favorable operating environment and quality information, products and services, which have value, and which enable credit unions to exist, compete and prosper in the financial marketplace. Visit our website to learn more. Envisant is a DakCU Senior CAP preferred partner. Contact George McDonald, DakCU's SVP/Chief Officer Engagement and Partnerships
with any questions.