Kevin Xu: What’s the state of mobile payments currently? With entrants like Apple Pay, Samsung, and Google vying for m-payments in store and online, are consumers adopting?
Carol Juel: While mobile payments are not new, we’ve seen a real tipping point over the past year, with consumers embracing the convenience factor and getting more comfortable with the technology. But there is still confusion on the part of consumers over the different platforms and understanding where each is accepted.
Synchrony Financial strives to be at the forefront of mobile payments technology, committed to working with all third-party digital wallets, including Apple Pay, Samsung Pay, MCX (CurrentC), and others.
As the largest provider of private label credit cards in the U.S. based on purchase volume and receivables, and 80 years’ heritage working closely with retailers, we are well positioned to shape the future of how private label credit cards can work in the digital payments space.
Our focus is on retaining the benefits of private label that appeal to our retail partners and our customers in whatever digital wallet customers choose.
We know that consumers will ultimately choose whichever payment method offers security and convenience. Ease-of-use and security will drive adoption.
How confident are consumers with mobile payments? Do they believe it’s secure?
A growing percentage of our customers interact with us only through their mobile devices – from applying for credit and using their device to manage their account, to paying for their purchase with their mobile device.
Customer expectations are different than in the past and we strive to fulfill these expectations, and at the same time, anticipate future trends and preferences.
Mobile payment applications are locked by PIN & password, which makes a mobile wallet more secure than a traditional wallet. The mobile applications do not keep personal account numbers on a consumer’s device and Synchrony Financial accounts loaded onto mobile devices will be device-specific and domain-restricted tokens, meaning they will only work in the merchant’s store, providing additional security.
The good news is that information security is talked about so much these days that it is becoming more understandable to the average consumer. Terms like tokenization, Near Field Communication (NFC), and Point-to-Point Encryption (P2PE) are now part of the ongoing dialogue. The broader understanding of these technologies will help to accelerate the move to mobile payments.
What can retailers do to expand upon the mobile channel? Are there specific age groups that are more open to m-payments?
We’re building on our existing mobile platforms for credit applications and account servicing with easy account management functionality and new ways to engage with shoppers and enhance value for them.
In January we announced a strategic investment in GPShopper, an innovative developer of mobile apps with a focus on the retail industry, to complement our proprietary mobile offerings.
Ultimately, we believe an expanded suite of solutions for retailers will integrate credit more easily into the shopping experience with personalized offers, mobile payment capabilities, loyalty programs and other key features.
Carol Juel, EVP & CIO, Synchrony Financial
As the Chief Information Officer of Synchrony Financial, Carol is committed to driving our overall Information Technology strategy and vision, with a continuous focus on payments innovation. As CIO of GE Capital Retail Finance for the last three years, she has led growth for clients, dealers and providers by developing strong technology partnerships, delivering innovative solutions and driving the company’s digital transformation.