U.S. Bank’s launch of a mobile credit card application for iPhones could improve customer service for retail audiences, market observers say.
Minneapolis-based U.S. Bancorp on Oct. 11 launched the new iPhone app that outdoor apparel and gear retailer Recreations Equipment Inc. (REI) is piloting (
Store customers can apply for a U.S. Bank cobranded REI credit card by downloading the app at iTunes App Store and entering application information for immediate approval while they are in the store.
The app produces a virtual card on the phone’s screen that store customers can use at checkout temporarily or until they receive their plastic card in the mail, Dominic Venturo, chief innovation officer of U.S. Bank’s payment services division, tells PaymentsSource.
“In today’s mobile environment, there’s a better way [to market retail credit cards in-store] and that is the genesis of the app,” says Venturo. Kent, Wash.-based REI is using in-store signage to promote the new app, U.S. Bank says.
He points out that once the consumer is approved for the card the consumer can also use the app to manage his or her account.
The smart phone app improves customer service by adding convenience and ensuring security and privacy when prospective cardholders enter personal information for a credit approval using their own phone instead of with the assistance of store personnel, Tom Johnson, vice president of product development at Zoot Enterprises, tells PaymentsSource.
“I think [U.S. Bank’s announcement] is a great move forward for customer service in the store and I think it will increase the amount of people willing to apply for the card,” he says. Zoot Enterprises, which provides instant credit approval for retailers’ and banks’ card programs, expects demand to increase for this type of mobile application. “I do think more will come out of this,” says Johnson.
The app will have an Android version in the near future, U.S. Bank says.
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