P2P Mobile Payment Solutions in 2020: What to Look for

It’s no secret that more consumers and small business owners have “gone mobile” since the beginning of 2020 or that more time is being spent with mobile devices. In fact, the current pandemic has bolstered mobile payment adoption for Millennials, Gen Xers and Boomers alike and is resulting in a rise in demand for real-time payment solutions for credit unions.

But, choosing the right mobile payments app can be a confusing and, let’s be honest, downright daunting experience. So many things to consider. So many options. Which is the right one? Does it even matter which one your credit union chooses?

Yes. It does.

So, what do you look for when searching for the right mobile P2P app for your credit union?

Selecting the right mobile payments solution can enhance the credit union’s reputation in the market, while minimizing the impact to your organization. But how do you know if you’ve put trust in the right hands? Here are 10 things to consider when picking a solution/provider to service your unique mobile P2P needs:

1. Community first.  Credit unions are a network of strong community-based financial institutions, so you should look for products and services that are aligned to support community interests.  Your corporate credit union offers a competitive response to big banks and stand-alone apps such as Zelle, Venmo, Apple Pay, Google Pay, etc.
   
2. Mobile is key. Today’s technology has created amazing tools and resources, putting useful information at our fingertips. Offering an app that provides convenient mobile payment capabilities will enhance your credit union’s image.
   
3. Stand-alone payment app. Research shows consumers prefer their payment apps to be accessible in stand-alone form – no need to open their banking app and risk others seeing their financial/personal information.
   
4. Branded solution. Members trust you with their finances and will trust the products and services that carry your logo. It’s important to find an app that allows members to see your name and logo from the get-go. Recognizing the app is from the credit union gives your members peace of mind that their money will be safe when using the application.
   
5. Keeps funds safe. Some apps will move funds out of the member’s share draft account and hold it in a digital wallet, creating risk for your members. A strong P2P app will keep funds safe in the member’s share draft account.
6. Secure payments using secure FI channels. Your P2P application should use the credit union’s secure and trusted channels for payments. This allows you to assist your member in tracking and ensuring payments are successfully completed, with top-notch security and industry regulatory compliance.
   
7. Protect your member’s data. Selecting a solution that will comply with data protection requirements will keep your members’ data safe.
   
8. Ease of Use. Getting started with your mobile payments solution and onboarding your members should be as easy as possible (or pie). This includes installation, hardware and software upgrades, and training. These steps – if difficult – become “hidden” costs that should factor into your decision-making. 
   
9. Technology management. Managing technology can be a huge burden to credit unions. Choosing a solution that is supported by a correspondent or solutions provider eliminates the need for additional overhead and ensures the app will have someone monitoring its functionality, as well as scheduling regular maintenance and technology updates.
   
10. Customer support. A provider offering a customer-first approach to customer support is crucial.  Although your payments app will mostly be “set it and forget it,” problems can occur with even with the best payment solutions on the market. You want a provider that offers 24/7 customer support.

Changing payment providers can be expensive, inconvenient, and problematic, thus, selecting the right solution from the start is so important. The list above does not include everything a credit union will need to consider when choosing a mobile P2P product. It does, however, showcase many of the important decisioning factors.

As Catalyst Corporate’s Vice President of Sales, Karen Coble directs the sales and training processes for correspondent, payment and technology services. With more than 20 years of experience in the financial services industry, she takes pride in helping credit unions transition to services that add value to their operations. To learn more about the value of P2P payment services email contactus@catalystcorp.org or call 800.632.5180.