The war for top of wallet has shifted to the digital battlefield

Mobile wallets are getting a lot of buzz. Well-known solutions like Apple Pay and Samsung Pay have captured the attention of the media, and the image of smartphone-waving hipsters at the local Starbucks is undoubtedly the embodiment of cool.

But is mobile wallet really where the action is?

For years, issuers have fought a high-stakes war of attrition with cardholders’ pocketbooks as the battlefield. Issuers have tried numerous approaches to getting “top of wallet,” or the cardholder’s first choice of payment at the point of sale, including offering color-coded card edges, custom designs and photos, and loyalty programs to boost point of sale activity.

But as cardholder behavior steadily shifts to the digital realm, the theater of engagement is changing. And as trendy and exciting as mobile payments are, for now it’s just a skirmish in the larger war. Digital wallets represent the future, and that is where your credit union should focus its efforts.

 

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