Here is an example of a credit card development, announced today by Synchrony, which will be useful after the pandemic is over. The new process brings credit cards one step closer to payment digitalization. And, once we get beyond COVID-19, the process will likely advance further.
- Synchrony, a premier consumer financial services company, is rapidly deploying digital technology solutions to help ensure a safe, seamless, and socially distant experience for every stage of the payments process – applying for credit, completing the transaction, and paying a bill or servicing an account.
Getting rid of paper and pushing consumers towards online and mobile interaction is critical. It is faster for the consumer and more efficient for the credit card issuer.
- Consumers can apply for a credit card on their device (in-store, at home, or anywhere), add a new credit card into their digital wallet, transact with contactless cards, and make monthly card payments.
- As a result of the company’s investments in technology capabilities and customer friendly tools, an estimated 70 percent of Synchrony’s credit applications in the second quarter was completed digitally.
- Approximately 80% of Synchrony’s total bill payment transactions are processed electronically — through both digital channels and by phone.
The secret sauce is integrating the customer’s device to enable communication with the retail host.
- Synchrony’s latest contactless solution is called “Direct to Device” – a patent-pending technology that provides an efficient contactless experience for customers using their smartphones.
- The technology enables a transfer of data between the business and customers’ mobile devices in-store.
- For example, if a customer shops in-store and wants to open a line of credit, the business can send the application to the customer’s mobile device through email or QR code.
- Unique codes for Synchrony partners or CareCredit providers allow an additional and easy way for consumers to learn about, apply for credit, and pay, all from their device.
- For merchants, each QR code is associated with the partner or provider’s Merchant ID number, making it easy to see who has applied, been approved, and has available credit – and at which locations.
Another interesting digital solution is Synchrony’s Loop Commerce solution, which allows a sender to send innovative gift cards from leading retailers, such as Coach, Kate Spade, and Target.
It is no wonder why we keep seeing Synchrony’s CEO in major media, such as The American Banker, Time, and The Economist.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group