Credit cards play a critical role in credit unions' consumer lending strategies, but many credit unions have hesitated to switch to in-house cards. This has mostly been due to the unique characteristics of credit cards and inadequate core systems. However, today's credit unions must rise to the challenge and implement an efficient card management system, which will ultimately benefit both their CU and its members. Throughout this article, we'll show you the top six key advantages of a core-integrated card payment solution.

Did you know that, according to 2021 fourth-quarter data from the Federal Reserve Bank of New York, Americans have over $856 billion worth of credit card debt? The amount rose tremendously from the third quarter of 2021, increasing by $52 billion. It is the most significant quarterly increase the U.S. has seen within the past 22 years and the third and only spike since the start of 2020.

As a credit union, providing your community's small businesses with the deposit and lending products they need is imperative to all you do. But are you currently meeting their merchant services needs? It's a fair estimate that credit card processing is a vital cornerstone for most businesses. And if you're not offering your members merchant services, you're missing out on a huge opportunity to deepen the relationship and increase your credit union's wallet share.

As a credit union, it's imperative that you offer merchant card services to local small businesses. Why? Because credit card payment processing is at the very core of small-scale companies, and of course, one of your credit union's goals should be to help them prosper.

Today, consumers have access to more ways than ever to pay for goods and services. Whether it's convenient Buy Now Pay Later (BNPL), Cash App, Venmo, PayPal, or embedded payments—they all represent easier, frictionless payment methods for consumers. But that's not all they share in common: they all pale in comparison to the popularity of credit and debit card solutions.

The term "digital wallet" has been floating around for the past few years. This technology doesn't require a physical credit or debit card and lets consumers pay for products and services using card information stored in a device such as a smartphone or a computer. In fact, according to a 2021 survey, around 150 million Americans have used a digital wallet at least once. Will this intangible payment method put credit cards out of commission? And what does this mean for your credit union?

Traditionally, credit unions haven't been considered digital innovators. Instead, credit unions are notorious for delivering a personable, in-person, in-branch experience to sustain member loyalty and build trust.

Today, however, everything is different. As digital-only fintech firms and major banks pour money into technology to apply external pressure, it's imperative for credit unions to develop value propositions around innovation. While credit unions may not be first adopters or innovators (in the traditional sense), they are fast followers. Let's take a closer look at three top emerging payment trends credit unions should be following and paying close attention to.

Digital payments took center stage during the pandemic, and their popularity became so strong, it's clear contactless payments aren't going anywhere. Commerce was already hopping on the digital bandwagon pre-coronavirus, but the shutdowns and online-only sales increased digital payments exponentially. Now, consumers are even more in favor of quick, convenient touchless transactions, which means that credit unions must be prepared to continue offering these valuable services and innovate further.

The financial world has already seen and will continue to see more competition in 2022, especially in regard to payments. Between the influx in buy now, pay later (BNPL) payments, and consumers' desire for faster, easier transactions, it's safe to say that rivalry is at an all-time high.

The world of payments is on a fast-paced roller coaster to an all-digital destination. The already speeding locomotive received a jolt of energy via COVID-19, which further increased the demand for digital, online, contactless, frictionless, and speedier payments. While most generations show an interest in digital payments, it comes as no surprise that the largest push is being generated from the rear.