US firm Fiserv has unveiled a new service that allows financial institutions eliminate the wait that often goes along with receiving physical debit cards
For cardholders looking to access a new or replacement debit card Digital Issuance from Fiserv enables delivery of an electronic version of a card. This allows users to make in-store and online purchases immediately, eliminating the need to wait for a physical card to be mailed out, received and activated.
The card can be added immediately to a digital wallet, promoting card loyalty, the company said. Cardholders not yet digitally engaged with their financial institution can receive a link to their new card via SMS while users of CardHub from Fiserv receive a message notifying them their new debit card is available.
Manasquan Bank, a $2.8 billion-asset financial institution headquartered in New Jersey engaged in a pilot project for Digital Issuance, testing the client experience end-to-end.
“Our commitment to offering Digital Issuance is a testament to our dedication towards providing our clients with the most innovative and convenient financial solutions available in today’s fast-paced world,” said James S. Vaccaro, Chair, President, and Chief Executive Officer of Manasquan Bank.
He added, “Digital issuance capabilities empower our clients with near-instant access to digital cards, allowing them to make convenient transactions quickly and with ease.”
According to a recently-published Juniper Research report, the total number of digital wallet users will exceed 5.2 billion globally in 2026, up from 3.4 billion in 2022, representing growth of over 53%. The value of digital wallet transactions is forecast to exceed $12 trillion in 2026, from $7.5 trillion in 2022.
Cardholders can access their digitally issued card through a text message that guides them through the steps to set up their card within Apple Pay or Google Pay, a process that is typical for consumers who are new to the financial institution. Another option is to add the card via the CardHub mobile app.
“Waiting for a physical card to arrive is an inconvenience for consumers and can lead to lost transactions for issuers. Consumers may switch to another card, possibly permanently, meaning the cardholder relationship could be negatively impacted,” said Rajeev Yerukalapudi, Vice President, Product Management at Fiserv.
“To increase wallet share, issuers need to increase convenience throughout the cardholder journey. That means employing solutions that facilitate digital issuance, making it easy to get a card and add it into the digital wallet,” she added.
