Digital natives are looking for credit.
As with any market, financial institutions must look to deliver the products and services that target customers will welcome the most, and with a recent study suggesting that 44% of US-based Gen Z consumers are planning to apply for new credit in the months ahead, digital innovations will be key for credit card providers.
Digital wallet and virtual card number provisioning have been pioneered by digital-first providers, with national and super-regional providers following close behind. 57% of providers tracked by the Digital Banking Analyzer offer the ability for credit card holders to store their card into a digital wallet within the mobile platform. This drops to only 14% of providers we track that offer this capability on the desktop platform, clearly indicating that providers prioritize digital wallet provisioning on device.
The differentiating and standout factor among credit card providers lie in those that offer additional wallet options and the capability to link to third-party merchants. Citi currently takes the lead in offering a variety of third-party linking options, including linking capabilities to Amazon and the Click to Pay online checkout solution. Employing these linking capabilities directly within the mobile application not only offers payment flexibility but also allows for seamless and frictionless payment journeys for e-commerce purchases and online transactions.
Virtual card features, on the other hand, are far and few between with only 14% of providers offering the ability to set up an additional virtual card within the mobile platform, dropping to 10% within the desktop platform.
In this increasing digital age, it’s imperative for financial institutions to stay ahead of the curve in order to stay relevant. This holds particularly true for traditional financial institutions as they often lag behind fintechs and neobanks in regard to digital banking innovations. There are boundless opportunities to expand and enhance virtual card and digital wallet provisioning in the current market. Credit card issuers are in a position to provide unique value offerings for digital wallet provisioning that can cater to a broader customer base.
