As a member of the CO-OP SmartGrowth Team, I’m constantly asked by our credit union clients what the future of credit and debit spending will look like after the pandemic is over. And it is times like these I wish I had a crystal ball!
Over the past year, my colleagues and I have witnessed unprecedented change in the payments space, from wild swings in credit and debit transaction volume to a surge in digital payments and a complete upheaval of what we might call “normal” spending by category.
One thing is certain, though: to become their members’ primary financial relationship, credit unions must continue to adapt their credit and debit programs alongside member needs. This will be important not only for portfolio growth but also for ensuring they offer the payment products and services that cardholders care about. A great example: a recent study found that one in five consumers say they have made a contactless payment for the first time during the pandemic. [i]
While we can’t know for certain what payment trends are temporary and which are permanent, credit unions can put themselves in a stronger position to drive payments growth post-pandemic by implementing these three strategies:
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