A recent study published by MasterCard Advisors confirmed that the availability of digital payments was a key point for cardholder engagement and loyalty, resulting in growth for the card issuer. Credorax agrees that digital payments represent a growing and vital source of revenue! Let’s examine some of the fundamental points of the MasterCard study.
Missing Out on Digital Payments Means Missing Out on Consumer Spending
As of last year, digital payments – meaning via e-commerce, contactless channels or digital wallets – represented one-fifth of all consumer credit card volume in the United States. Additionally, purchase points are expanding from well-established smart devices, such as computers, phones, and tablets, to game consoles and smart appliances.
The MasterCard study found that cardholders who use e-commerce channels spend more, from three times more to up to 10 times more (for those consumers who use multiple digital payment platforms). “Based on proprietary research and analysis, it can be concluded that there is a direct correlation, sustainable over time, between the level of digital engagement and the level of cardholder credit card spend,” noted the study.
Also of note: Digital engagement helps maintain consistent spending patterns and increases overall engagement with credit card brands. There is less attrition, leading to a lower cost to acquire new customers.
Benefits for the Banks
There are clear financial benefits for banks that are early adopters of digital payment strategies – 14 percent higher in active cards over a two-year period. Additionally, the “active cards” tracked show higher spending growth. Another important point tracked by the MasterCard survey is that growth via digital payments does not cut into existing credit card charges made in-store, but rather increased total spend for both points of sale (digital and brick-and-mortar).
How Can Credorax Help You Embrace Digital Payments?
Credorax recognized the need for digital payments several years ago, and it is an acquiring bank, built from scratch especially for e-commerce. What does this mean in our everyday practice?
- Building and adjusting our digital payments solutions for individual customer needs
- Credorax’s proprietary ePower 2.0 platform, a centralized, unified and automated global-domestic acquiring platform
- Reporting tailored to help customers be agile
- Readily addressing omnichannel purchasing
The conclusions of the MasterCard survey indicate that digital solutions are a linchpin to improve time-to-market and to have a “frictionless digital experience” for cardholders. Credorax’s long-standing expertise in digital payments can help our customers keep their customers happy! To find out what we can offer you, please be in touch at email@example.com