Source: Finextra Apple is launching its own credit card that will be tightly integrated into its mobile wallet and promises to help customers lead a "healthier financial life". Available in the US this summer, the titanium Apple Card is a built into the Apple Wallet app on iPhones and is touting a simple application process, no fees, financial management tools, and top level security and privacy. As widely predicted, the tech giant has teamed up with Goldman Sachs and Mastercard on the new venture, which takes it deeper into the financial lives of its customers as it focuses on fee-generating services. Users can sign up for the card in the Wallet app in minutes and start using it with Apple Pay in stores, in apps and online. There are no annual, late, international or over-the-limit fees while interest rates are "among the lowest in the industry" claims Apple. Machine learning and Apple Maps are being used to label transactions with merchant names and locations, with purchases automatically totaled and organized by color-coded categories. Users also get weekly and monthly spending summaries. On security and privacy, a unique card number is created on iPhone for Apple Card and stored in the device’s Secure Element, a special security chip used by Apple Pay. Every purchase is authorized with Face ID or Touch ID and a one-time unique dynamic security code. With rivals Facebook and Google facing privacy concerns, Apple is stressing that it doesn’t know where a customer shopped, what they bought or how much they paid. Meanwhile, Goldman has committed to not sharing or selling data to third parties for marketing and advertising. The firm is talking up an attractive rewards programme, with customers receiving a percentage of every purchase amount back as Daily Cash, which is added to the card each day and can be used right away for purchases using Apple Pay, to put toward their Apple Card balance or send to friends and family in Messages. Jennifer Bailey, VP, Apple Pay, says: “Apple Card is designed to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money, transparency to help them understand how much it will cost if they want to pay over time and ways to help them pay down their balance.” m.p.

source: ATM Marketplace In this day and age, consumers have come to expect digital applications that are speedy, secure, personalized and, ultimately, able to facilitate their various tasks and transactions. When it comes to payments, there are myriad digital wallet options available, offered by players ranging from card networks (e.g., Chase Pay, Masterpass) to alternative payment providers (e.g., PayPal) to major retailers (e.g., Amazon) to traditional financial institutions. Findings from a recent study conducted by ath Power Consulting revealed that financial institutions are the most favored providers of digital payment services, with 2 out of 5 consumers (40 percent) saying they would prefer them over other providers. By contrast, only 1 out of 5 consumers (20 percent) say they would choose an alternative payment provider and another 20 percent say they would have no preference whatsoever. Only 14 percent would prefer to use a card network to make digital payments. Financial institutions also lead the pack when it comes to consumers believing that they keep their payment transactions and personal data safe and secure. Eighty-seven percent of consumers say they have trust in them. Payments providers such as PayPal are the next most trusted at 62 percent, followed by card networks at 57 percent. Financial institutions are certainly in a strong position to leverage the revenue opportunities presented by digital wallets, but many are not taking full advantage of them. Ath Power found that almost half of smartphone users (48 percent) have at least one wallet app installed on their phone, however, a majority (58 percent) have never used a digital wallet. By encouraging greater adoption of digital wallets, financial institutions have the potential to drive considerable gains. A recent study by MasterCard found that digital wallet engagement helps drive greater card use, particularly during the first four months after customers begin using the wallet. During those early months, average spending on the card uploaded to the wallet rises more than 20 percent. The study also found that the majority of digital wallet users fall into higher-value customer segments. These are the consumers who have the greatest spending volume, highest frequency of card use and broadest card use by merchant category. This suggests that digital wallets may be a means for banks to better engage with higher-spending, more affluent cardholders. As previously mentioned, when consumers adopt their bank's digital wallet, that bank has the potential to derive tangible benefits. Perhaps more importantly, though, a digital wallet can help a financial institution remain relevant to consumers — and more effectively compete with nonbank disrupters — as purchase activity continues to migrate to digital channels. So how can a financial institution encourage their customer base to use their digital wallet applications? Here are four ways: Promote security — Asked why they have not used digital wallets, the No. 1 reason cited by nonusers was "security concerns." Financial institutions should far and away more actively leverage the trust consumers have in them, and better explain the security features of their digital wallet applications. For instance, education about tokenization could certainly eradicate the fear some nonusers have, and persuade them to use their app. Use targeted offers and promotions — Financial institutions can encourage digital wallet adoption with personalized offers that are based on a customer's location, shopping patterns, preferences and demographic cohort. Create a millennial-friendly customer experience — Financial institutions can engage customers by integrating with technologies like Amazon Alexa, Apple's Siri and Face ID facial recognition from Apple, Google Assistant, Facebook Messenger, and wearables. Reward customers — The ultimate goal is to become your customer's default digital payment app. So whether it is in the form of rewards points, a credit towards a future purchase, or some other incentive, reward your customers for their loyalty. As innovation in digital payments moves forward, banks risk losing wallet share to nonbank competitors. They must place a sharp focus on delivering a next-gen customer experience and becoming the digital wallet app of choice if they are going to stay in the game.

As mobile shopping continues to grow, consumers are downloading retailer’s mobile apps at double the rate of previous years and conducting more in-app purchases, according to new findings from Synchrony. With the mobile channel becoming critical for retailers, more consumers are using the apps to buy, browse, read product reviews, access coupons and find a local store. According to new data from the Synchrony 2018 Digital Study, 67 percent of consumers have downloaded a retailer’s app. More than half of those did so specifically for a coupon or discount offer. Nearly half of consumers that have downloaded a retailer’s app use it for purchases. “In today’s competitive landscape, a mobile application is not just another piece of technology for retailers. Done well, retail apps engage both in and out of stores with personalised experiences and easy credit solutions,” said Maya Mikhailov, SVP, Chief Marketing Officer, GPShopper. “Consumers that use retail mobile applications are a retailer’s top shoppers. As such, they want their apps to be tailored to their unique shopping experiences and preferences.” Key findings from the study include: 1. Consumers are increasing their purchases through mobile apps – leading to many retailers placing increased emphasis on this technology. The 2018 Digital Study revealed that consumers are using double the number of retail mobile apps compared to a year ago (four versus two), with purchase activity through these apps increasing. Many retailers are responding to this trend: 47 percent said they have placed a significant focus on retailer apps. An outcome of this focus is happy customers – 83 percent of consumers said they are happy with the experience of their retail app, a sign that consumers will increase shopping using retail apps in the future. 2. Most shoppers think mobile wallets will replace physical ones by the year 2025. 60 percent of US consumers believe that by the year 2025, the average shopper will carry their phone and no physical wallet. Even though consumer adoption of mobile wallets has been slower than expected, many consumers are getting used to the idea that paying by smartphone is inevitable. As ever, it’s Millennials who are leading this trend. Surprisingly, older Millennials (not younger ones) are the age group most comfortable with only carrying their smart phone. 61 percent of older Millennials are ready to leave their wallets at home right now, while only 42 percent of the general population are ready to make the switch. For retailers who have not thought about enabling mobile wallet acceptance, now is the time to start. The survey showed that most large retailers ($100M+ in sales) have implemented mobile wallet technology (75 percent), yet only about half of smaller retailers ($10M or less) have done so. 3. Consumers feel very positive about credit card features in retailer apps. 53 percent of consumers said they have card servicing features with their apps. Of this group, 77 percent rated the features extremely or very valuable. As a result, retailers are quickly including payment features in their apps, and forward-looking companies are enabling these features. 4. Smart speaker adoption has doubled since 2017. One in five consumers now say they own a smart speaker. Consumers aged 50 and under are driving usage, but all age groups showed significant growth compared to last year’s study. Smart speakers are still primarily used to answer routine search requests, but there is great potential for increased usage in shopping, purchasing and customer service. Source: synchrony