Two announcements involving payments from Brookfield, Wis. based Fiserv include a white paper outlining how financial institutions can build a mobile payments strategy; and ATMs enabling CardFree Cash from Fiserv.

In the white paper, “The Four Pillars of Mobile Payments,” details how consumers currently engage in mobile payment activity. They pay other people and merchants in person and online, pay bills, and themselves by using mobile to transfer money from one account to another, withdraw cash and deposit checks.

“As mobile payments continue to mature and adoption grows, understanding how consumers utilize these payments will enable financial institutions to anticipate future demand and build an intelligent payments strategy,” Tom Allanson, president, Electronic Payments, Fiserv, said.

To meet consumer expectations, drive adoption and enhance the user experience, Fiserv recommended financial institutions take a purposeful approach when developing a mobile payments strategy. To build a foundation for success, financial institutions can consider:

  • Investing in the mobile payment options consumers already use. Fiserv suggested while it is tempting to race toward the shiniest objects in the cascade of new technologies, the best place to start is with making existing options better, more convenient and easier to use. Integrating popular capabilities such as person-to-person payments, bill payment, account transfers, and credit and debit card monitoring and management into the mobile banking experience will help drive engagement.
  • Focusing on the overall mobile payments experience. Before adding new capabilities, consider how consumers want to use mobile payments. Consumers want a simple, frictionless solution to daily financial tasks.
  • Emphasizing security and educating consumers about it. The whitepaper recommended when it comes to moving money, security is a natural concern for most consumers. Implementing and communicating about a secure environment helps build trust.
  • Contextualizing the benefits and capabilities of the channel. Emphasize how mobile payments and associated capabilities, such as alerts, can make life easier for consumers. Examples are highlighting how mobile alerts can help people remember to pay bills on time or notify them about possible fraudulent transactions.

“In this era of rapid innovation, consumers are making mobile payments when and where it's more convenient than traditional methods,” Allanson said. “Financial institutions that reduce friction for consumers in everyday tasks, such as paying friends, buying a cup of coffee, or withdrawing cash from an ATM, are positioned to succeed in this evolving space.”

As mobile technology changes the way Americans access their money and the extent to which they use physical currency, cash remains the most widely used form of payment. Fiserv announced leading retail ATM manufacturers, including Nautilus Hyosung America, Genmega and Triton, now support CardFree Cash from Fiserv on their retail ATM terminals, giving consumers more locations to access their cash in a without a physical card.

“Research shows the need for cash isn't going away and consumers expect greater speed, ease and convenience in accessing their money,” David Keenan, senior vice president, Product Management, Card Services, Fiserv said. “CardFree Cash from Fiserv enables ATM operators to satisfy the growing demand for secure, immediate cash disbursement across a range of P2P, B2C and self-service environments.”

Independent sales organizations such as Glendora, Calif.-based NationalLink, an ISO with 15,000 ATMs, enable CardFree Cash at their ATMs. In addition, payments processor Worldpay recently announced the capability to support CardFree Cash at more than 19,000 ATMs.

“With more than 21 years of ATM deployment, NationalLink is continuing to evolve to add value for the consumer, industry partners and financial institutions,” Sam Kandah, president of NationalLink, one of the largest privately-owned ATM companies in the country, said. “Cardless cash is at the forefront of providing convenient and secure cash withdrawals from the palm of your hand.”

Fiserv noted CardFree Cash, offers the opportunity for incremental income through more frequent ATM use and positively impacts foot traffic in retailers' stores as consumers seek out cardless cash-enabled ATMs.

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Roy Urrico

Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).

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