Digital issuance — The new must-have for credit unions

The world has become accustomed to a culture of convenience and immediacy. Accelerated by the pandemic, this digital shift has permeated nearly every aspect of society. From same-day order pickup at big-box retail stores and ordering food delivery via apps to binging the latest show or movie on streaming services, consumers are now accustomed to a world of instant (or near-instant) delivery and gratification.

Convenience and immediacy also impact how people want to pay for goods and services. Digital banking and contactless forms of payment have become the standard preference for consumers — cash is no longer king. An ever-increasing number of cardholders trust digital payments and enjoy the convenience of purchasing goods through e-commerce and by using digital wallets, whether the digital wallet is on their computer, mobile phone or smartwatch.

However, an unfortunate reality of digital payments is that they can lead to fraud or data breaches, which means that cardholders often need to get issued a new credit card. Gone are the days when a cardholder patiently waits four-to five business days for a new, physical credit card to be mailed to them. Cardholders also dislike having to manually update their credentials for automated payments tied to the previous card.

There is room for growth in the digital payments space, especially through digital issuance — the secure, real-time ability for members to digitally transact without interruptions, even in the absence of their physical card. Digital issuance is made possible through the push provision of cards from their financial institution’s app to their digital wallet, by providing access to their card credentials within their financial institution’s app, and by updating the card on file in real-time after a lost/stolen/data breach reissue.

 

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