Ondot Systems, a digital services platform for credit and debit card issuers, said it is partnering with Visa in a new program. The agreement enables cardholders to add Visa cards instantly to their digital wallets.
“Digital card use is one of the key drivers of card choice. Making it easy to add cards to digital wallets allows Visa cards to be top-of-wallet both online and in-store,” said Joe Baker, Ondot’s vice president of business development, in a prepared statement. He said that via Ondot’s Card App, Visa cards can “be loaded into digital wallets and be used to make purchases right away.”
Baker added that this convenience gives “card issuers the ability to provide cardholders with instant signup, digital wallet provisioning, spending insights, safety controls and easy self-service capabilities.” Thus, Ondot’s app aims to encourage consumers to make a particular card their preferred form of payment.
The Santa Clara, California-based company said it provides more than 4,500 banks and credit unions with a digital card services platform to drive cardholder engagement. “From community issuers to top global banks, Ondot enables financial institutions to offer in-the-moment convenience, control and transparency for credit and debit cards, leading to higher usage, lower cost and reduced fraud,” Ondot noted.
The company aims to leverage the seismic digital shift in consumer spending that has occurred over the past few months.
In an interview, Vaduvur Bharghavan, president and CEO of OnDot, told PYMNTS that big changes in financial services are coming in the post-pandemic world. He said that financial institutions (FIs) that connect their card offerings to their mobile apps are on a roll. In contrast, he said, the “digital laggards” – FIs that have been slow to adopt new technologies – have been the big losers.
Bharghavan noted that’s because consumers are looking to use mobile services and apps. OnDot has seen the open rate on FIs’ downloaded mobile apps more than double, from about 35 percent in the pre-COVID-19 era to 79 percent as of last week, he added.