Optimizing legacy payment programs for the future

Members want all their options available and fully functional.

Every day, consumers are faced with a myriad of questions: What goods or services will I purchase or pay for today? Where will I go to buy them, or through what channel? What payment method will I use to conduct transactions? The options to satisfy these choices are nearly endless as the retail and payments landscapes continue to rapidly evolve and expand.

While trends like digital currency or real-time payments are important to watch, credit unions should also ensure their legacy programs continue to be optimized and positioned for success. In fact, in PSCU’s recently released 2019 Eye on Payments study, consumers across all generations reported debit cards were their preferred way to pay at the majority of purchase locations and in most retail situations. Notably, this included purchases online, through order-ahead food apps and for streaming services like Netflix or Hulu.

With more and more types of goods and services now available online, purchasing something on the Internet or through an app has become second-nature to most consumers. Nearly 96% of all survey respondents reported making online purchases at least a few times per year, with 57% of credit union members and other financial institution customers making an online purchase at least a few times a month. A majority of Gen Z and Millennials agreed they are comfortable using a debit card to make online purchases. Additionally, over one-fourth of credit union members reported using a mobile app for order-ahead food purchases at least a few times a month, and two-thirds use a streaming service. The majority of consumers chose to use debit cards to conduct transactions on each of these channels as well, illustrating that convenience has trumped security.

 

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