Relaunching your private label card offerings
Private label cards are starting to see a large comeback because of the ongoing COVID-19 pandemic. Many merchants, specifically retailers, have shifted their focus to these cards and by extension, are developing their own loyalty and rewards programs to attract new consumers. This gives them the ability to connect to their customer base by providing a new, individualized experience that uses the data that they have on hand. Fully utilizing the data that they have on hand will allow them to craft a card offering that can help individuals with what they specifically need. Credit union members trust their institutions and are willing to give a little more data to receive better service and solutions. This trust is there because of years—if not decades—of an established relationship between both the credit union and its members and the community at large. Credit unions have that advantage over some of the larger banks. This puts credit unions in a unique position when it comes to data usage.
Providing private label cards has also paved the way for post purchase installment loans, which allow members to still buy higher priced items that they need but instead pay on a recurring basis of their choice. This empowers members to shop and pay the way that they want while still benefiting the merchant. That is why it is critical for credit unions to have these features baked into their private label offerings.
Where does the virtual aspect come in?
Virtual private label cards provide several distinct advantages:
These cards are more convenient. Providing your private label offering as a virtual option gives consumers the ability to integrate it into their mobile wallets. That means that the same convenience that Apple Pay users experience can be had through a merchant’s own card program. A virtual card offering increases member acquisition and retention by adding value to a traditional private label card program. Not only does convenience factor in, but incorporating a virtual option makes transactions more secure. These cards have built in fraud controls that can help mitigate the risk of stolen data and funds.
How can a credit union “relaunch” these programs?
Relaunching these programs gives credit unions the ability to expand their card programs and offerings. The opportunity to cross sell and make that merchant or retailer a loyal customer by giving their consumers a great experience that keeps them coming back is there. That is why it is important to partner with a technology partner that can even provide APIs to help retailers promote their private label cards to their members. Whether in-person or through an online store/mobile app, these APIs can give consumers clear transparency on what they want to buy and the rewards points that they can get.
