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Gone are the days when fragmented and dated brand interactions were enough. Consumers are becoming more sophisticated every day, demanding personalized interactions and seamless experiences on all channels and stages in the customer journey. Today, especially in fintech, a seamless and embedded app experience could be the deciding factor for which products you purchase and which brands you choose to do business with.
So, what makes a seamless and embedded app experience so important? And how can you ensure your business can deliver? Here’s what you need to know.
When considering options for credit card programs, businesses can’t ignore that consumers are increasingly adopting digital payments. Whether they are making in-app purchases, shopping online, or using their digital wallets for in-store checkout, consumers are opting out of physical credit use.
According to research from the McKinsey Global Institute, 82% of Americans were utilizing some form of digital payment on a regular basis in 2021, up 4% from 2020 and more than 10% in the past five years. The study also shows that since the emergence of new financial technologies and services like Buy Now, Pay Later (BNPL), consumer trust in novel fintech platforms is increasing and on track to rival that of traditional financial institutions.
What we find even more interesting, however, is what the report reveals about the increased use of digital wallets. Most notably, McKinsey found that 15% of digital wallet users frequently leave their physical wallets behind when leaving the home, relying only on a smartphone when they need to make a purchase.
As smartphones begin to replace wallets, the digital payment and credit card products that offer the most intuitive, convenient user experiences will likely have a considerable advantage over those that fail to optimize in these categories.
In a recent analysis of market trends in payment processing by Intelligence Insider, the authors found that increased agility surrounding rewards offerings was becoming a significant factor in driving consumer adoption. The article points out that simple rewards are becoming less attractive to the average consumer, putting pressure on providers to create value in more modernized perks, such as “payment flexibility, exclusive member experiences, and access to financial management tools.”
But these kinds of reward programs aren’t easy for everyone to execute, and consumers are far less likely to take advantage of these offerings if they need to navigate slow, cluttered, and non-intuitive mobile applications. It all circles back to the increased competition surrounding consumer attention and engagement: consumers are in control, and if you can’t offer the rewards that they want in a way that optimizes their overall experience, then somebody else will.
According to a recent Equifax study, there has been a 31.4% increase in bank credit cards opened by consumers in America this year. Many are saying it’s a result of recent inflation, and credit cards are offering much-needed cash flow to the average consumer. How can financial institutions rise to the occasion and meet increasing demand?
At Deserve, we live and breathe digital-first credit card programs, and our Consumer Card Platform has been our bread and butter since day one. No matter what your customer base is looking for, we have the tools and experience needed to customize a card program that speaks to their individual needs, and more importantly, we know how to deliver it alongside a seamless mobile app experience that stands above the rest.
Most importantly, if you bring your vision, we’ll do the rest. Ready to launch the credit card your customers have been waiting for? Check out our website and talk to our team today!