For most card issuers, the dream is for your card to be the only card in someone’s wallet. Whenever someone wants to pay for something, they’ll just reach in, grab your card, and provide you with a little interchange revenue.
But the reality is that most cardholders carry several cards in their wallet. Some people are especially fond of credit cards—it’s not uncommon for a credit card holder to carry four or five other cards with them. What’s more, they probably have a favorite.
That favorite card—that top of wallet card—is going to get the lion’s share of interchange revenue. And becoming the favored option can be very competitive, although getting there is very possible. But once you reach top of wallet, how do you stay there?
Strategy One: Rethink Your Definition of “Top of Wallet”
Basically, “top of wallet” doesn’t mean top of wallet anymore. In many ways, it never did. Some people keep money clips, purses, or other handy card- or money-holding accessories, so those aren’t wallets. And then there are mobile wallets, which do away with physical wallets altogether.
It’s important to remember that today, online purchases make up a good amount of total consumer purchases. These online purchases can be attributed to the regular suspects: the Amazons and eBays for online retail. Yet it also includes subscriptions and recurring payments, such as Netflix, Spotify, and BarkBox.
Understanding the way your cardholders actually use their cards is an important first step. Once you acknowledge the amount of card-not-present transactions your cardholders have, you’ll be better poised to accommodate consumer needs. Basically, understanding how people use cards will help you create better ones.
Strategy Two: Facilitate Payment Information Tracking
This section might also read: “build a better wallet.” Wallets aren’t just physical anymore – they are digital too, and with that comes a plethora of opportunities to rethink what a wallet can do.
Wallets nowadays need to incorporate online and remote payment methods. They need to keep track of your payment information in a simple, centralized location.
They should also show where your cards are stored online, and even be updatable so you could change payment from one card to another.
In effect, building a better wallet should help cardholders optimize their payments and help them maximize their card value. Ultimately, it should make their lives easier and their spending more transparent.
Strategy Three: Help Cardholders Monitor Expenses
Transparency is key. Transparency builds trust, which in turn builds loyalty. If you can offer increased transparency to your cardholders, they’ll trust you and your card(s).
If you want to keep your card top of wallet, consider helping them manage their spending. Show them their recurring expenditures. Present them with their subscriptions. Give them the option to keep them, cancel them, change their payment methods, and so on.
Helping your cardholders make better, more informed payment and purchase options will build trust and loyalty with your brand. As they associate those good qualities with your brand, so too will they associate them with your card. That will help you keep your card top of wallet once you get there.
If you’d like to read more about maximizing interchange revenue and giving your cardholders good consumer experiences, subscribe to our blog! Or follow the links below to see what else we’ve written about recently.