Melissa Kopp, Vantiv
MONTREAL, Quebec—Allowing consumers to control their debit card with their smartphone—setting spending limits, turning the card on and off and more—is leading to higher debit spending, reports one payment processor.
The functionality that is becoming more mainstream as data breaches demand that consumers assist in the fraud fight, is also leading to 40% higher debit spending on cards with the functionality versus those without it, Vantiv told attendees at NAFCU’s annual meeting here.
Card control can be as simple as Discover Card’s “Freeze It” on/off switch. Or it can be fairly complex, giving consumers the ability to not only set spending limits, but even choose where the card can and can’t be used.
Greater Feeling Of Comfort
Melissa Kopp, regional sales leader for Vantiv, told CUToday.info that card control is leading consumers to use their debt card more. She said the controls give cardholders a greater feeling of comfort with their plastic, they have less fear of fraud, and the remote capability simply keeps the card in front of the individual more.
“They like that they can turn their card off if they lose it, instead of having to call an 800 number,” said Kopp. “They like setting their own alerts. They like having the control.”
Kopp said that card control is now also a differentiator for a financial institution that offers the service. “That’s leading to greater stickiness, as well,” she said.
Card Marketing Tips
During the session, Vantiv also shared advice for marketing debit and credit cards.
Key debit takeaways:
- FIs that actively market debit cards show transactions increasing by 13.8%, compared to 2.5% for those that do not market.
- In addition to the practice of going after low users with usage campaigns and new inactive cardholders with activation campaigns, do reactivation campaign for individuals beginning to show changes in debit card behavior.
Key credit takeaways:
- Data breaches have not scared away credit card usage, as credit card share of consumer payments is expected to grow from 28% in 2013 to 36% in 2018.
- Expect to see more 0% introductory rates this year.
- Do not ignore direct mail, as competitors are stepping up their use of the tool. Credit card direct mail efforts increased by 4.4% last year over the previous year.