Why Apple Pay Can't be your Only Mobile Wallet Strategy on 6/8/2015

Developing the right mobile payment strategy is a priority for any credit union that wants to stay competitive amid rapid changes in technology and consumer behavior.

June 8, 2015

Apple Pay offers a smooth, consumer-centric solution backed by a powerful marketing machine, but there are several reasons why it can’t be your ONLY mobile wallet strategy.

  • Economic Impact. New fees, and more importantly, the lack of influence you have over which payment card is top of wallet in Apple Pay and other 3rd party applications will be detrimental for your interchange.
  • Brand. Only your credit union can protect your brand and keep members engaged to ensure they don’t consider alternative financial services providers.
  • Data. We all know the dangers of giving up your rights to customer data. Who do you want to be in control of where the information goes and how it’s used?
  • Most of your members don’t have iPhones. One company has the majority of the cell phone market. Guess what? It’s not Apple.
  • Replacing the credit card swipe shouldn’t be the goal. Discover why the goal has little to do with the transition from swipe to touch and tap and much more to do with new revenue streams and technologies that will dramatically change how consumers shop.

Taking advantage of Apple’s momentum is not a bad idea for your credit union but as your members will make payments more often than go into your branch or online banking system, this will likely be their most used financial interface. Ignoring members that don’t have Apple Pay capable phones or allowing a single 3rd party to be in charge of this interface is at best, a risky proposition.

CU Wallet has developed an educational brief that gives you the details that you need to think ahead. Become a CU Wallet member to download this educational brief and find out why Apple Pay can’t be your only mobile wallet strategy.

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