ORLANDO, Fla. If Mike Kelly had his way, he would ban discussions about the “future of mobile payments” because mobile’s future is taking shape right now.
During a Wednesday panel discussion at Credit Union Journal’s Grow Show the PSCU CEO told attendees that a massive shift is taking place in how people are behaving, transacting their financial business and looking at their credit union. “The money center banks are stumbling. Consumers realize bigger is not better, niche and community is good, and that the co-operative financial business model wins. We are in the midst of a once-in-a-generation-level disruption mobility is absolutely the future and that future is here.”
Kelly termed mobile a “super channel” and predicted eventually mobile payments will surpass plastic in two years being a strong complement and possibly replacing plastic in 10.
EMV Not There Yet’
Turning to EMV, the panel of payments experts stated that although it is possible mobile payments may leapfrog EMV, betting on that idea may put a CU at the back of a long line and possibly at the bottom of members’ wallets.
Brian Scott, VP at The Members Group, Des Moines, Iowa, said that for CUs with large contingents of members who travel or live overseas, investing in EMV now could be a good idea. Otherwise, he reminded that EMV is an effort being driven by the two big payments networks.
Caroline Willard, EVP, markets and strategy at CO-OP Financial Services, said her company is not certain that the fraud savings from EMV outweigh the cost of the chip cards now. “So we recommend that you wait. Plus, merchants (converting POS terminals to EMV capable) are not there yet.”
Kelly cautioned that credit unions have to weigh their own situation and memberships, and also realize that if the CU waits too long to get moving with EMV the lines to get set up with processors could get long. “The 2015 liability shifts are right around the corner. Contemplate issuing EMV cards naturally, as cards expire.”
PSCU is based in St. Petersburg, Fla.,
