The Financial Brand Insights - Fall 2022

installment payments. This capability gives the consumer confidence that their debt will be paid quickly and often provides them with a lower interest rate— all while capturing the spend on your financial institution’s credit card. Communication remains one of the key concerns for credit card issuers looking to be the payment method of choice. BNPL options show up at the point of sale, and financial institutions need to make sure their offers are top of mind in this critical moment as well. One way to make sure cardholders keep their credit card as a first-choice payment option is to provide location-based contextual offers via text or push messages. As your cardholder enters a furniture store, push an offer to their phone—“In the market for a new couch? Any purchase over $100 can be split into six monthly payments with a 0% interest rate.” A message as simple as this reminds consumers that your card is available and a new credit line, like the ones provided by BNPL, is not necessary. Another option is to provide clear communication about the availability of installment plans prior to purchases. Include information about the plans in your regular consumer-focused communications that you distribute and share—like emails, physical mailings, or ads—so cardholders know they can set up a payment plan post-purchase. Compete and Win The consumer payment experience is a significant factor in engendering trust and loyalty. You can successfully compete against BNPL and be the payment method of choice by creating and delivering a purchasing journey that engages and delights your credit cardholders. ▪ About the Author Randy Piatt is Vice President, Product Solutions and Marketing at Fiserv. Randy and his team are responsible for developing and delivering product strategies and messaging for card-based digital payment solutions.

Provide Secure and Enriched Transaction Information One of the main concerns consumers have about credit cards is their own usage and spending patterns. Providing cardholders with detailed insights regarding their spending through enriched transaction information makes it easier for them to understand their purchasing habits and empower them to make informed buying decisions. Spending insights need to be delivered with meaningful data, while also being simple enough to understand at a glance. Providing high-level views that include relevant data like spending by category and by month will provide your cardholders with significant insight into where their dollars are going and enable them to measure month-to-month changes. An enriched set of transaction information can make the difference between a panicked consumer who is worried about fraud and someone who is secure knowing that each purchase is one they’ve made. The transaction data should include actual merchant names, retail locations for physical purchases, the transaction amount, and purchase date. The more details you’re able to provide, the better informed your consumer will be. Ideally, transaction details will include merchant contact information so consumers can make any inquiries about their purchase directly with the merchant. Create Offers that Make It Easy for Cardholders to Say ‘Yes’ Many credit cards already offer the ability for cardholders to pay off larger purchases in planned


Digital Wallets and Push Provisioning

Banks and credit unions can meet consumer expectations for intuitive, easy payment options by getting on board with digital wallets. Using push provisioning, new customers can transact payments as soon as their account is approved, rendering old-school card activation unnecessary.

By Alkami

Consumers like to shop online — and not just for “nice to have” items. As consumers, we buy groceries, order pet supplies, pick out new clothes and schedule appointments, all from our mobile devices. At checkout, we no longer need to input payment methods, as retailers have begun offering more flexibility by prompting a payment from digital wallets. Consumers have

Top-Of-Mind: BNPL options show up at the point of sale, and financial institutions need to make sure their offers are top of mind in this critical moment as well.





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