A roundup of Day 2 at SourceMedia’s Card Forum and Expo.
Callahan’s own Aaron Pugh is in Orlando, FL, this week covering SourceMedia's 24th Annual Card Forum and Expo. The forum promises to help attendees “stay current on … developments in the credit, debit, prepaid and emerging payments markets,” and Aaron is looking for the best, most innovative strategies and marketing ideas to share with you, our readers. Read on for highlights from day two.
Canada migrated to EMV chips in 2010. It sees U.S. implementation as a chance to not only boost security and global access but also push forward innovation in NFC, mobile, contactless payments, etc., at the same time while using the same resources.
Best practices from Canada include EMV marketing and messaging — “the magnetic stripe is bad" messaging ticks off the customer segments that are not selected to receive the chip immediately — timelines for deployment — three to five years from research to flawless implementation and adoption — and pin versus signature options — consumers more easily adopt pin so there's potential to skip the signature option altogether. The only consumer downside of EMV is it’s apparently much easier to forget your card in the machine.
Super Center Competition
In other Canadian news, Wal-Mart Stores Inc. has plans to open a real bank alternative there. These alternatives go beyond the company’s current Money Centers that already offer a branded credit card, reloadable prepaid cards, money orders and transfers, bill pay, and check cashing. Currently, the bank alternative is a card product but there are more services on the way. The retail giant also has plans to adopt a similar strategy in the U.S. Here comes a mega competitor.
According to a study by Oliver Wyman, a New York City-based management consulting firm, 25% of consumers say they want mobile payments. Of that group, 78% want it provided by their FI as opposed to a card issuer or a third party such as PayPal. Nearly half — 49% — have switched their preferred payment in the past two years.
UDAP addresses unfair or deceptive acts or practices in credit cards. The regulation affects not only prepaids, which I wrote about yesterday, but also card reward programs. Credit unions should consider how they will integrate new standards into their larger product approval, risk assessment, issue management, and vendor management plans and processes. There are no set rules or penalties from regulators yet, but they will be scanning social and online channels for rewards-related complaints and soliciting direct consumer feedback.
Read Aaron's day one roundup here.