Acceptance of smart cards in US depends on utility
Functionality and instant gratification will drive the adoption of smart cards in the US, rather than fraud reduction and new transaction schemes.
The last time that Loyalty software and technology provider, Catuity, and smart transaction software provider, Welcome Real-time, were mentioned together in an article in The Wise Marketer, they were head to head in a court battle. Now they have both got into bed with the same company, Australian-based Cards etc. The reason: they both use Cards etc’s Arterium smart card management system. Catuity Catuity and Cards etc have teamed up to cooperate technically and to jointly market and sell products. This follows the integration earlier this year of Catuity’s personalisation process and Cards etc’s smart card management system, Arterium. The combined technologies enable card issuers to conduct multiple payment and loyalty programmes as well as manage the functions and applications of each smart card on one end-to-end platform.
Different reasons According to Michael Walters, joint CEO and founder of Cards etc., acceptance of smart cards in the US market will succeed based on the utility the card provides to the card holder and merchant acquirers. “New transaction schemes and fraud reduction, which drove smart card acceptance in Europe, will not be likely to move this technology forward in the US. Functionality, such as Catuity’s refined ability to permit persistent marketing during the transaction process, as well as bringing immediate loyalty gratification for the consumer, will be what jump starts the use of smart cards here.”
Welcome Real-time Meanwhile, Welcome Real-time and Cards etc are cooperating strategically to simplify the implementation and management of smart card programmes. Welcome Real-time’s president and CEO, Aneace Haddad, says that the combined products of both companies are now making it easier for both issuers and acquirers to launch and manage smart card programmes. The result is what every issuer demands – a significant reduction in implementation cost and time, and the tools to provide high levels of customer support. “Integrating XLS and Arterium from Cards etc provides issuers with the tools they need for everything from fast and accurate answers on programmes or card replacement, to managing application programmes and security across multiple card technologies and loyalty systems.”