1. Frictionless speed is the industry standard.

Consumers expect this today and experience it whenever they shop on Amazon or stream a video on Netflix. To understand what frictionless means, it might be helpful to examine what it isn't. Friction occurs when transactions are clunky and difficult, integration across vendors is lacking and a laborious number of steps is required. Keystrokes matter. If your members can perform a payment with biometrics and one click, that will be their preference – as long as the transaction is secure.

2. The future of payments will revolve around digital/mobile.

While widespread adoption of digital and mobile payments may not occur as quickly as many had predicted, if you are not on the ground floor with this technology, ice will freeze at your feet. By 2020, an estimated 60% of consumers will use mobile applications at least once a month to access financial services. You have to be in this market today and should invest in a platform that will carry you into the future. To stay informed, consult your CUSO, read blogs and op-ed articles, attend webinars, and tap into the educational resources offered by associations and the industry press.

3. Card fraud is on the rise, so customize payments intelligently.

This guideline is critically important and ties back to the concept of frictionless speed. Speed is important, but you should never take on adverse risk to get something done faster. Technologies for card controls and alerts, for instance, empower members to control exactly how their cards are used, and are well worth the time, effort and investment involved.

4. Security innovation will strengthen your chain.

Payment security is a fast-growing business today, with new vendors entering the market in droves. However, be diligent in your evaluation of new providers as many are start-ups that are unproven in the industry. CO-OP receives calls every week from companies entering the security market and is evaluating a vast new generation of solutions. Remember that security, reliability and member trust go hand in hand.

5. Cause marketing deepens member relationships.

Credit unions need to demonstrate corporate social responsibility. Our commitment to strengthening communities is in our DNA. Cause marketing through payments products puts your social values front and center with members and makes it easy for them to contribute as well. So give them the option to donate as they spend. For many, these ideals are what attracted them to your credit union in the first place.

6. "Apply swiftly and make it simple for the member" is a recipe for success.

Streamlining payments through early adoption of advanced technologies can prove transformative to the consumer experience. Uber is a great case in point. The taxi industry was once sewn up by companies like Yellow Cab – until Uber came along with the "invisible" payment. There's power in simplicity.

Ultimately, no matter how flashy a technology is, if it doesn't solve a problem for your members, it may not be worth the investment. Make sure you know your member base well. Recognizing where pain thresholds are and providing innovative, thoughtful solutions is always a best practice that will lead to future success.

Lois Hansen is vice president, product development for CO-OP Financial Services. She can be reached at 800-782-9042 Ext. 2634 or [email protected].