PSCU is prepared to handle what they predict will be a rush in 2020 to adopt contactless cards, the company said in a press release on Wednesday (Nov. 20).
The credit union service organization (CUSO) has already rolled out over a half-million contactless cards to members from 14 owner credit unions through natural reissuance. In 2020, PSCU anticipates distribution of more than three million new contactless cards to 100-plus credit unions.
PSCU aims to stay ahead of payment innovations to help ensure that its owner credit unions members’ accounts are used most frequently. By offering owners contactless cards, “we help our credit unions achieve top-of-wallet status” as tap-to-pay adoption continues to rise, said Jeremiah Lotz, managing vice president of digital experience and payment products at PSCU.
PSCU’s second annual Eye on Payments study shows that 25 percent of respondents use a contactless card a few times per month, citing convenience, security, ease and speed. Non-users said stores they frequent don’t yet accept contactless cards.
As more merchants turn on near-field communication (NFC) technology and begin accepting contactless payments, it’s anticipated that more consumers will participate. According to Visa, 95 percent of terminals have contactless-enabled capabilities and 80 percent of the top 10 merchants are accepting NFC payments as of October 2019.
“Credit unions should be prepared to not only offer contactless cards to their members, but also have information readily available to educate members on how to use these new payment methods and ascertain whether a merchant’s point-of-sale terminal is contactless-enabled,” Lotz said.
PSCU supports 1,500 credit unions with 900 owners representing more than 3.8 billion transactions annually offering payment processing, risk management, digital banking and more. Founded by credit unions in 1977, it became a credit union cooperative in 1994, according to its website.
The company recently announced it will invest $100 million over the next few years to focus on developing additional tools and solutions using cloud technology, machine learning and artificial intelligence (AI).