Issuers Race to Win Spending Before the Card Arrives

The period between a customer’s credit approval and the arrival of their physical card is no longer a 'dead zone' for sales. According to new data, nearly 60% of card issuers now offer instant provisioning to digital wallets like Apple Pay or Google Pay. This is a massive jump from just 32% recently. For retailers and service providers, this means the 'swipe' can happen seconds after an application is approved, rather than seven to ten business days later. For your business, this technology removes the primary friction point of in-store or on-site financing applications. Previously, a customer might get approved for a new line of credit but couldn't use it immediately to complete a large purchase unless your POS system was specifically integrated for 'account look-up.' Now, as issuers push credentials directly to the customer’s phone, that buyer is ready to spend instantly. This shift is driving higher conversion rates and larger initial basket sizes because the dopamine hit of a new credit line is paired immediately with the ability to buy. If you aren't currently promoting 'instant use' during your financing pitch, you are leaving money on the table. Customers are increasingly expecting their digital wallets to be loaded and ready for use the moment they hit the 'submit' button on an application.

Source: PYMNTS

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