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Credit union leaders are on the forefront of the technology transformation in payments. Industry experts from Elan Credit Card, Elavon, and Visa shared insights on four key areas of focus, how changes impact members, and predictions for the future. 

1. Member experience:

Technology doesn’t necessarily guarantee member loyalty, but by creating a flawless and safe user experience, loyalty and engagement is strengthened. Millennials and Gen Z, specifically, are used to app-like, frictionless payment experiences.  Keeping up with technology they have come to expect is going to help attract and maintain those younger members — ­ which is a key concern of credit union leaders. 

“Traditionally, the ‘people helping people’ approach to member service was almost always delivered through the personal interactions between members and credit union staff. Advances in technology allow credit unions to live out that philosophy at a greater scale, while still maintaining a personal connection with members.” — Tolan Steele, SVP North America Consumer Payments, Visa

2. Payment preferences:

It is essential to meet consumers where they are — ­ especially when it comes to technology. Digital experience is often the top reason consumers choose one financial institution over another. There has been a large shift from payment methods like cash or checks to digital transactions like tap-to-pay, scan to pay, digital wallets, etc.

Today more transactions are occurring digitally or over ecommerce than in-person. According to Tolan Steele from Visa, in 2024, tap-to-pay transactions (either through card or digital wallets) will make up more than 50% of all physical transactions. This shift solidifies how important modernized payments technology is for your credit union to remain competitive.

“Merchants continue to want payments embedded into how they operate and run their business. Not only are they accepting payments, but they are using software to run their business and initiate payments, invoices, or engagement with whoever the buyer is.” —Jordan Reynolds, Head of Global Payments, Elavon

3. Security:

Cybercriminals are ever evolving with their methods and the security of your members is top priority. It’s becoming more important that financial institutions and merchants utilize tokens and consumer authentication to help ensure seamless, safe payment experiences for their customers.

In addition to the latest technology, educating staff and members on how to identify potential threats and trends to be aware of is critical.  

“When Elan is talking to leaders about concerns in the industry, fraud and data security is always in the top three. Picking the right partners is also a great a way of protecting members.” — Matt Good, Director of Regional Partnerships, Elan Credit Card

4. Strategy:

When it comes to a strong payments strategy, there is not a one size fits all approach. However, to remain competitive, credit unions need to remain agile, flexible, and invest in ongoing technology enhancements.

Credit unions who are not able to keep up on the technology, security, and integrations in-house as consumer habits change, should consider the benefits of a third-party partnership.

If you have questions on how Elan or Elavon can support your credit union, complete the form below.