Credit Union Geek

Marketing, Strategy, and The Force by Joe Winn

ApplePay & Your Credit Union

Yesterday, Apple hosted their annual Worldwide Developer’s Conference Keynote. Of their big public events, this is my favorite, as it discusses the technologies they’re pursuing, rather than simply the newest iPhone. And are they pursuing.

There are great sites to read up on the highlights (ArsTechnica is my favorite). From iOS 11 to macOS High Sierra (yes, they actually called it that) to innovations with augmented and virtual reality platforms, they’ve showed their hand for the next year.

But there was something else featured which should concern you more than their upcoming in-home speaker: Payments. After years of requests, Apple has added peer-to-peer payments to ApplePay. Specially, within Messages. Come the release of iOS 11 in the fall, you’ll be able to send or receive money while in a message conversation with anyone. It will use your credit and debit cards linked to your ApplePay account. Of course, these are yours, right? Remember how important it is to get your cards top of wallet, both in the back pocket and digitally!

This new world of direct payments can be an enormous opportunity for your credit union. Think of all the times people share small cash payments. A few dollars for lunch, a bit more for gas, or any number of possibilities. Position your digital card properly and your members can be earning rewards for those, as well as reaping you interchange income (Note: This is an assumption, as the platform has yet to launch.). Regardless of how much you make when members use your card, being the one they use is essential.

Of course, there is also a threat. What if a person doesn’t have (or want to use) a debit/credit card? Well, there will now be an Apple Cash account. That’s right, ladies and gentlemen, Apple just developed an easy way to serve the unbanked! Careful, or it could start to steal your members as well. My suggestion? Work with it. Suggest it for members who have financial challenges, aka, credit issues or even youth. Then, when they’re able to qualify, offer them an ApplePay-compatible debit or credit card. Convenient for your member, profitable (and sticky) for you.

Technology can seem scary for embedded industries. Instead of ignoring it (remember how Siri can now handle bill payments?) and hoping doom doesn’t befall your world, brainstorm how you can lead alongside.

It’s always about best serving your members.

Image credit: https://philoforchange.files.wordpress.com/2013/07/mon1.jpg

4 Comments

  1. This is the number one reason I ask my team to report feedback from members asking for these payment methods. We need to offer them to compete and make them our own!

    • Courtney, it sounds like your Credit Union team is hot on serving your members the way they want! That’s what I’m trying to get across: You’re not going to be the world’s go-to contactless payment system. However, if you can be a part of it for your members, and show them how it benefits them to be part (if they want), then you’re ahead of the curve. It’s always about helping your members achieve their life goals by assisting them with the financial aspect. (No one looks to buy a house by imagining the amazing mortgage experience). Thanks again for your input!

  2. I just used Apple-pay a few days ago. It was seamless and very advantageous.

    • Norris, I agree. It almost makes spending money too easy! As long as you remind your members to make sure it’s your card they select each time. Could be with rewards or some other perk. Or, for many, simply because it helps support their Credit Union. Do you find you have those kind of community-minded members at Golden 1?

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