At least eighty percent of the world now owns a smartphone (Oberlo). Mobile devices are playing an increasingly prevalent role in people’s lives, including their banking and payment activities. Maintaining a thriving prepaid program in this digital space requires a strong mobile approach, and a well-designed prepaid app is a key element of this strategy.

Mobile vs Online

The importance of catering to mobile devices is clear in how people are using them. Already 88% of Millennials and Gen Z use a mobile device to interact with their bank accounts (Forbes). People also spend nearly 4 hours a day on their mobile devices and at least half shop online via their mobile phones once a week or more (Oberlo). People tend to use apps more than browsers on mobile devices (Insider Intelligence). Thus mobile devices along with apps provide an important connecting point for people as they shop and manage their money.

What App Features Do Cardholders Want?

The convenience of mobile devices has won many converts, especially among younger generations, but what about the apps themselves? What app features are most important for consumers?

The top three functionalities (Forbes):

• Balance and fraud alert management
• Secure cards with on/off feature
• The ability to deposit checks·  

 These are all functions that can be incorporated into a prepaid app to satisfy cardholders and make your prepaid program more relevant to their needs.

Forty-two percent of people forty and under also see budgeting tools as critical or important to have in an app (Forbes). Prepaid cards already have the benefit of helping people budget their funds, so merging this traditional feature with the convenience of an app enhances the budgeting experience for cardholders.  

Designing apps so the process is as smooth and streamlined as possible is also important for these convenience-focused users.

Credit Union Benefit

Cardholder prepaid apps are also beneficial for your credit union. Apps create the opportunity to gain insights into cardholder activity that can help you serve members more effectively. Some of the app features themselves benefit both cardholders and your credit union. The ability to easily link a prepaid card to a mobile wallet via an app makes using these cards more convenient for mobile-wielding cardholders, encouraging more regular use. Also, fraud protection features empower cardholders to better guard themselves against fraud. This enables them to feel more comfortable using their prepaid cards while potentially lessoning the extra costs created by breaches.

Mobile apps can thus help your prepaid card program compete in the growing digital payments space. Apps make the cardholder experience more streamlined and convenient. They also help build cardholder confidence and loyalty.

As a leading provider of payment processing services, Envisant is here to serve your credit union. To learn how we can help you with your digital payment strategy, please contact us at 1-800-942-7124.