COMPTON, Calif.-So long, toll-free phone numbers. One person has a plan to put account information even closer to cardholders' fingertips.
QR code verification for account access is one of three projects selected as finalists for the second annual CO-OP Think Prize, the winner of which will be announced this week. The grand prize is $10,000 from MasterCard.
The project was the brainchild of Maricela Jauregui, branch manager at Mid Cities CU here, who told Credit Union Journal that her idea is not only simple, but provides members with fast, easy access to account information.
"We've all got some kind of plastic card in our wallet-credit cards, ATM cards, gift cards-and we've all had to call that 800 number on the back of the card at some time in our lives," said Jauregui.
Going Mobile
She added that because most consumers will have smart phones within the next few years, adding scanable codes for account information helps keep up with an increasingly mobile device-reliant society.
Jauregui explained that security protocols could vary based on the type of card. "If you just want to get the balance on a Starbucks card, there's really no security needed," she said. "But if you want something more personal and financial information, then it would prompt you to enter your four-digit PIN number."
Jauregui noted that QR codes might even be able to replace magnetic stripes on the back of cards. "You'd put it in an ATM machine and it reads your QR code," she said.
Jauregui said she has not spoken with any card providers about the cost to implement QR codes on plastic-"To be honest, this was just an idea, and I didn't think it was going to go this far," she admitted-but Jauregui believes the idea would not involve much budget.
"It's just this added feature and tying in the technology to read from the card. I'm not a technology geek, but if we can gather this information off the back of a magnetic stripe on the back of a card and it's tied to a phone system when you call in, I don't see this being a very cumbersome way of reinventing the wheel."
Additionally, FIs that choose to implement the concept would not need to immediately transition to QR code-enabled cards. Rather, they could be phased in as members' current cards expire.
"Right now a member pays $10 if they lose their card, so I also see it as an opportunity for fee income," she said. "If a member wants a card with a new QR code on the back, maybe you charge $5 or $10 for that initial card. You get it for free when your card expires, but if you want it now, we'll give it to you now-but it's going to cost you, and that's fee income for credit unions."
Implementing QR codes also helps appeal to Gen Y members, she said. "The credit union movement is constantly trying to appeal to a younger generation, and what does the younger generation want? They constantly want things at their fingertips."
Jauegui believes the cards could also provide a potential marketing opportunity. "It's a way we're constantly able to stay in touch with our members, because we've got cell phone numbers," she said. "Who's to say that we might not later want to utilize that as a form of marketing to do blast text messages?"
