news.cuna.org/articles/105333-payments-change-is-on-the-horizon
Bob Hackney

Payments Change Is On the Horizon

Much has changed in the last year, CSCU president tells member CUs.

April 30, 2015

During his address to the 2015 CSCU Solutions Conference, CSCU President Bob Hackney highlighted the themes that permeate through many of the event’s sessions, including:

Mobile payments. “A year ago at this conference, we were still treading water,” said Hackney. Apple Pay's emergence changed that dynamic. Apple’s digital wallet and payment service is starting to settle many unanswered questions and is increasing mobile payments among consumers.

Smartphones. Further advancing the mobile payments trend, 71% of people with a smartphone have either an Apple or a Samsung device. These two brands will create trends in mobile payments and credit unions should follow what these phone makers do.

Digital payment strategy. Credit unions must talk about getting their credit and debit cards enrolled in digital wallets. During the next five years, mobile payments will grow 173%, while retail will grow just 32%. It's critical to have a strategy, Hackney said.

EMV. Earlier this year, CSCU announced it would cover EMV/chip costs for 2,300 member credit unions. “I have never seen an organization in the credit union space” make that kind of investment before, Hackney said. CSCU urges credit unions to ready themselves for the transition. Credit unions will need to teach members how to “dip,” Hackney said of the physical process at the terminal. It won’t be “swipe” anymore, and that will confuse members.