Summary: Customer or member friction negatively impacts the overall experience your credit union is trying to provide its membership. Investing in frictionless payments is one way financial institutions can heighten their overall member satisfaction.
When a member has a poor experience with their credit union, it is considered customer friction. This can be caused by a poor service, long wait times or inadequate technology. Offering frictionless payments to your membership is a simple way credit unions can work to strengthen their overall member experience.
What are frictionless payments?
According to Tech Target, “frictionless payments are a method of using data from devices, apps, and websites to integrate buying opportunities as simply and seamlessly as possible into consumers’ everyday activities and natural environments.”
Large companies like Uber, Starbucks, and Apple have credit card functionality built into their technology, making it simple for their customers to complete transactions. In addition to mobile apps, mobile wallets and contactless cards also offer a frictionless payment solution for users.
Why are frictionless payments important?
While contactless payments currently account for a small percentage of payment methods in the United States, the Economist predicts that is about to change. By 2021, it is anticipated that mobile payments will reach $262 billion and contactless payments will make up one-third of digital payments in the U.S.
In order to appeal to the younger millennial generation, credit unions need to keep convenience at the forefront of their strategy. More than one-third of millennials do all their clothes shopping online. They cite the ease of use and speed or frictionless experience as the driving factor behind this behavior. Credit unions can also capture this demographic by ensuring their technology meets the wants and needs of their membership.
How can my credit union implement these payments?
Credit unions can implement frictionless payment solutions by evaluating their current mobile app. If functionality and convenience are lacking from your app, it may be time to consider investing in a new product. MAP’s mobile payment app offers features such as secure mobile payments on the go, fraud alerts and notifications, location services as well as card controls.
Along with mobile payment apps, digital wallets are another way credit unions can provide frictionless payments. Visa Checkout allows shoppers to choose their preferred payment method with a simple click of a button. This service works across multiple devices and makes the online shopping process fast and efficient.
Are you interested in learning more about frictionless payment options? Contact MAP today to learn more about our mobile app and digital wallet solutions.