4 Ways Credit Unions Can Grow Take-Up Payments
A critical mass of U.S. and Canadian consumers are completely tied to their smartphones. More than half of adults own smartphones, and recent research indicates the average smartphone user checks his or her phone more than 150 times a day.
Most smartphone owners say it’s now their primary access point to the Internet. These powerful little computers in our pockets are quickly changing how we learn about products and services, bank, and pay for things.
Truth be told, credit unions would be better off if people just used their mobile phones to make phone calls. But people are using them for much more than talking and take-up mobile payments are growing quickly. Novantas fielded two mobile payment surveys on FindABetterBank.com since April 2013 and we’ve seen the market grow substantially between surveys.
The Filene Research Institute and Novantas explore the latest mobile payment trends in the report, Bank Shopper Snapshot Survey: Mobile Payments Tracker II.
Why does take-up of mobile payments matter to credit unions? Adoption of mobile payments will erode interchange revenue and disaggregate a major component of how consumers use their primary banking institutions because they’ll use other providers to make payments. Projecting weaker primary banking relationship in the future will change how you calculate member lifetime value today – in a bad way.
These four ideas will put your credit union in the middle of your members’ mobile payment transactions.
Offer expedited bill payments. In the U.S., more people pay bills on their mobile phones than smoke cigarettes. However, they’re more likely to use services provided by billers than by their primary banking institutions. Why? They want their payments to be credited right away. Expedited mobile bill pay is the best way to ensure members pay these bills through the credit union.
Partner with mobile POS providers. Build bridges with mobile POS providers like PayPal and retailers like Starbucks that will encourage members to connect their credit union accounts to these mobile payment apps. For example, offer additional rewards for using their credit union accounts when making mobile POS payments.
Tightly integrate P2P into mobile apps. Many credit unions offer Popmoney to their members, but you would hardly know it. For many consumers, particularly young adults, P2P is more relevant on their mobile phones than on their PCs. This should be a major feature on your mobile app and promoted as such. The mobile P2P market hasn’t exploded yet. Get ahead of the curve.
Encourage employees to mobilize and evangelize. Based on a social media study by the Filene Research Institute, employees can be excellent ambassadors for their credit unions. But many employees don’t use their credit union as their primary banking institution. How can they demonstrate real passion for member services if they have no experience with them? Credit unions must persuade their own employees to use the credit union as their primary banking institution and to use the mobile services provided.
The report is the latest in a series of exclusive content from Filene available to CU Times’ readers. Check out these other reports:
- Mortgages and Credit Union Performance: 1980–2011
- Channel Delivery for Tomorrow
- In Search of Member-Friendly Noninterest Income
- From Presence to Purpose: Developing Social Media Strategies and Metrics for Credit Unions
- Innovations in the Payment Ecosystem
- Next Generation: CU Loyalty Among Adults
- Human Resources: What Workers Want