ST. PETERSBURG, Fla.-More retailers-such as Target, Walmart and even Starbucks-are using incentives to encourage consumers to use their store cards. To overlook these efforts, even on the smallest transactions, can lead to devastating losses to the card revenue streams, and across the CU's entire product line, warns PSCU.
PSCU President Michael Kelly insisted that credit unions must remain in the transaction chain. "You have to stay as close as you can to your member so you don't get cut out."
Kelly cautioned that could happen if credit unions ignore mobile payments, which allow card issuers to more easily provide consumers with incentives to use their plastic. "The card and mobile keeps you in the game. If I don't touch your card everyday, I am not in your brain."
What can happen, assured Kelly, is that consumers will begin shoving their credit union card further down in their wallets, especially as mobile makes it easier to load on the apps and carry less of the cumbersome plastic.
"The small transactions beget the big transactions, so you have to get those transactions, no matter how small. If I use the credit union's card less and less, the credit union is further away from my mind when it's time for that home loan or car loan. Members are much more likely to think of you if they touch your card every day."
For info: www.pscufs.com.
