Credit Card Firms Innovating Services to Compete with FinTech

Companies that issue credit cards are elevating their offerings in order to compete in the modern arena, says FinTech News Singapore. According to experts, issuers are stepping up their services by allowing contactless transactions.

With the emergence of various FinTech payment methods, consumers have a lot of payment options aside from cards. These alternative methods include mobile wallets, peer-to-peer applications, and cryptocurrencies.

However, industry specialists say that credit accounts will continue to be in use in the years to come. In fact, FinTech News Singapore cites TransUnion’s report revealing that there is an increase in credit card use in 2018. The introduction of contactless cards is a step towards competing with new fintech innovations.

Mastercard’s release of contactless cards around 10 years prior proved to be a success around the world, especially in Canada and some countries in Europe. Huge financial institutions such as Chase, Barclays, Citibank, UnionPay, and HSBC.

Aside from cashless and contactless payment options, issuers are also gearing for ticketless transportation. Amnah Sharma of Mastercard says that the company is developing services that will allow consumers to pay for their tickets with just the tap of their cards.

Ticketless transits were first implemented by Transport for London (TfL). In December 2012, TfL introduced a contactless system that allowed riders to board buses using bank cards. Singapore’s Land Transportation Authority (LTA) also introduced a similar service through SimplyGo, which makes ticketless transportation possible for Mastercard users.

Meanwhile, biometric scanners are also a viable development in this sector, says Sharma. According to Sharma, credit accounts may soon be able to contain personal information, similar to birth certificate details. It may also serve as a tool for password consolidation.

Mastercard and Visa have launched biometric cards in the past.

Besides the mentioned innovations, issuers are also incorporating AI tech and card consolidation.