Why are credit cards still popular
The main advantage of any credit card is that its holder can buy what he needs and pay back the money for it later. Freedom of choice is the main thing that still attracts users' attention in credit programs. Additional "weight" is given to them by the strategy of dual products, according to which, in addition to lending along with the card, you can take advantage of other functions. For example, credit programs that offer not just a card but a personalized product in a corporate style or with an exclusive design stand a much better chance of success. You can learn more about White-Label personalized credit cars solution at wallester.com.
The fact that the popularity of credit card programs is not declining is evidenced by the results of constant surveys among consumers. In the U.S. alone, over the past decade, the number of credit card holders has almost doubled. Now, at least 175 million Americans have at least 1 credit card for active use. According to official data, at least 500 million credit cards are issued in the U.S. every year. This figure is expected to only increase.
For most Americans, the credit card is one of the "islands of security" that help them survive in difficult times. It was they who helped U.S. residents survive the peak of the pandemic. Interestingly, despite the increased credit card activity during the epidemic, the default rate and the number of lapsed payments were at their lowest. Credit cards were a way for responsible users to improve their financial situation even before the pandemic. And with the pandemic, their use only increased. Consider other reasons why credit card programs still retain their popularity.
Not just credit cards that get customers' attention but branded, personalized products that allow them to make payments a part of the user's life. Many brands and fintech companies, to remain competitive in the market, offer their clients issue cards with an exclusive design. This service is especially appealing to members of Generation Z. They are now entering the age where credit offers are becoming available to them. Among the variety of credit programs, they will undoubtedly choose a bright and stylish product that will meet their needs and can inspire a sense of trust.
Launching your credit card program, you develop a deeper relationship with your customers. Suppose they use your core product and become branded credit card holders. In that case, it shows their high loyalty to your company. A credit card can be tailored to the preferences of each individual holder. It can have customized controls and rewards for use.
Using modern platforms to run your credit program, you can get information about the credit card holder's purchasing behavior online. With this feature, you can more accurately tailor the timing and content of your marketing offers to increase customer interaction. This information will help you get to know your customers better and develop new, more in-demand products.
Convenient payment tool
The payment method a customer chooses, in most cases, depends on what exactly they are buying. Small purchases and fare payments are usually made in cash or via a mobile wallet. Bill payments and everyday purchases are made with debit cards, credit cards, and peer-to-peer apps. For large purchases, credit or installment payments are used.
Personalized credit cards are not a competitor to any payment methods listed above. It is a payment tool that a company can offer its customers in parallel with other strategies. It is an addition to existing products that will help improve the shopping experience for your customers and bring their desires and needs to live. In many cases, when deciding to make a purchase, the availability of a branded credit card helps encourage the customer to make the purchase. Many would refuse to make a purchase without a personal means of payment.
Many brands and fintech companies shy away from launching a credit card program because they think it will take a long time. Today's platforms make it possible to spend just a couple of months implementing a card program, not years like in the past. The platforms are universal, so they can be used to run a program and manage it completely. They have an open API and are easily integrated with software products already existing in the company.
Modern platforms make it possible to produce the following solutions:
- credit, debit, and prepaid cards;
- personalized cards;
- virtual and physical cards;
- cards stored in a mobile wallet.
This broad set of features allows any company to develop a customized credit product for itself and each cardholder. The platform will enable you to adjust the card program as you use it, experiment, and improve it infinitely. Such possibilities allow them to fulfill clients' wishes to the maximum, thereby significantly increasing their loyalty to the company.
Modern credit card program launch platforms allow you to customize them to your needs and preferences. The following features are available to users:
- setting limits. You can set limits on the number of transactions, the number of transactions, the geography of payments, and the frequency of payments, as well as limits on categories of purchases;
- choice of the preferred method of authentication. You can use the PIN, CVV, and 3D Secure to identify the cardholder;
- setting up the system of automatic instant notifications. It is possible to switch on receiving Push-notifications, SMS, and other methods of informing the cardholder about his activity on the account, about balance replenishment, and for receiving personalized offers from the issuer.
Credit card programs have not lost their relevance. They remain indispensable budget planning aid and help their owners with unexpected expenses.
Credit cards are a versatile means of payment that can be used to pay for purchases online, through POS terminals, and to withdraw cash within a set credit limit. You can use them anytime and in any part of the world. You can control your expenses in real time and set credit card limits online.
Credit cards issued through modern platforms have advanced functionality. Thanks to tokenization technology, they can integrate with mobile payment systems, making their use convenient, fast, and secure.
Through the platform, you can fully manage your card program. This helps make business more efficient. No need to go to a banking institution and get involved with paperwork. You can issue a new card, block it, set a limit, or adjust any other parameters. Thanks to a modern API, you can fully track card information and manage your cards in case of theft, loss, or damage.
An additional advantage of modern credit cards is the possibility of their personalization. The client can choose their design, tactility, and other branding elements. This will help increase not only cardholder loyalty but also brand awareness as a whole.