3 Unexpected Mobile Payment Challenges
NEW ORLEANS — With mobile payments on the verge of becoming part of daily life in America, issuers need to start taking precaution today against what’s in store for them when offering cellphones-as-payment-tools technology to their customers.
Though there’s a lot of preparation required to set up a mobile payments users, Eric Crozier, senior director of new product development at Barclaycard U.S., cautioned Mobile Banking & Emerging Applications Summit attendees about three mobile payment headache scenarios in particular that took him somewhat by surprise:
Disclosures. When plastic cards are mailed to consumers, they receive all the required disclosures in that same mailing. In mobile payments, one new question for issuers to answer is how do you ensure consumers have all the required disclosures faster than their payment credentials going live.
Activation. In the near term, issuers will have to send plastic along with NFC payment options to consumers. This presents activation challenges, including “interesting customer dialog,” Crozier said.
Servicing. Take a customer calling in through a bank’s IVR, for example. Today, the service rep asks the customer for his account number. However, this authentication experience will change as digital wallets take flight, and banks must take note. Why? When consumers use their phones for payments, they no longer know how to find their account numbers.
