Mercedes also joined the fray in January, when it announced its move to acquire electronic payment services provider PayCash Europe, which it plans to use to launch “Mercedes pay” in its Daimler Mobility Services subsidiary. That subsidiary runs several car-sharing, fleet, public transit and taxi services. Mercedes said customers will be able to use Mercedes pay to purchase company services using their smartphones; it also plans to use the new payment system to facilitate vehicle-financing transactions.

Though credit union experts who spoke to CU Times said in-car payment technologies like Honda's aren't necessarily a direct threat to the day-to-day operations of most credit unions right now, they do symbolize a larger trend — one that is indeed changing how credit unions do business.

“The piece of plastic that we as credit unions have thought was the center of payment technology for decades — and consumers got used to — is becoming increasingly irrelevant,” Filene Research Institute Managing Director of Research Andrew Downin explained.

Though that attention-getting car technology may not yet be ready for prime time, he added, it's still a good example of why credit unions have to stay aware of the changing payments landscape: Consumers are soon going to expect different things when they want to pay for purchases, he explained.

“Think about the convenience of being able to pay for certain things without having to get out of your car,” he mused.

For people like Robert Voth, who is a consultant in the consumer and commercial financial services practice at advisory firm Russell Reynolds Associates in Chicago, the advent of cars that pay for things is a reflection of the ongoing seismic shift in form over function when it comes to card use.

“It's just another version of the digital wallet. And that's how one has to really look at it. The card is still the primary payment vehicle; it's just where it's stored,” he said.

The proliferation of mobile wallets and card-not-present transactions also means it's more important than ever for credit unions and other card issuers to ensure they are what marketers call “top of wallet,” that is, the first choice among the consumer's other cards.

But becoming top of wallet may warrant different marketing tactics these days, Voth said.

“You don't want to just say, 'Please use our credit card at a gas station and get two cents back.' That marketing program — which has been done — will fail,” he said. “What happens when that singularly focused transaction disappears because Honda decides to get together with one of the giant card issuers and create an entire card-not-present program? Well, then you're screwed. You're holding the bag.”

Mobile wallet adoption and corresponding growth in card-not-present transactions may increase card use, and more card use is usually a good thing for credit union card issuers. But they're also helping nontraditional institutions like Google, Amazon and PayPal grab market share, said Sabeh Samaha, who is president/CEO of the Chino Hills, Calif.-based technology and e-business consulting firm Samaha & Associates. That too highlights the need for effective marketing that can make debit and credit cards stand out, he said.

“It is a competitive requirement, period. And [the marketing] should be targeted, not what I call spray and pray,” Samaha said.

There is one aspect of in-car payments and the future they represent — one likely dominated by card-not-present transactions — that's particularly unclear at the moment, Samaha added.

“When it comes to interchange, it's helter-skelter out there right now,” he said. “It's going to continue to be in play; it's going to continue to evolve. I believe there's going to be continued pressure — downward pressure — because of the maturation of these types of transactions. The noninterest income is going to continue to compress.”

Downin, who worked in credit union marketing departments for about two decades, said card-not-present growth has also made competitive rewards programs a key part of modern card marketing. Now is a good time to focus on making members aware of the advantages and benefits of their cards — especially when so many members are deciding which will be the “default cards” in their phones, tablets and one day even cars, he added.

“I think it's one more reminder that credit unions — and this is regardless of if you're a $10 million credit union or a $10 billion credit union — it's one more reminder that credit unions need to stay aware of what is happening in the marketplace,” he said.

“It all goes back to how easy it is for credit union members to do business with their credit union,” Downin added. “And if there are road blocks, consumers will choose other options.”