Applying for a store-branded credit card at the register just got faster
By Tracy Brackman | Published: November 4, 2016
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Shoppers can now apply for store-branded credit cards at the register without holding up the rest of the line. Alliance Data Card Services – an Ohio-based division of Alliance Data Systems Corporation that provides private label, co-brand and commercial credit programs -- recently launched I.D. Self-Scan and Frictionless Mobile Credit. The two mobile-friendly tools are designed to make credit card applications simpler and faster for consumers and retailers at checkout.
Sheryl McKenzie, vice president of marketing, product and capabilities for Alliance Data, stated in a press release, “We’re focused on providing innovative solutions, such as these new acquisition tools, that put the customer experience first and reduce friction in both the card application and purchasing process.”
The first tool, I.D. Self-Scan, is a new technology that uses a photo of an applicant’s ID to populate the majority of his or her credit card application. To use the tool, either a consumer takes a photo of his or her driver’s license or state ID using a mobile device, or a store associate takes a photo of an applicant’s ID using an in-store tablet. I.D. Self-Scan then extracts information from the photo, and uses the data to autofill as much as 70 percent of the application. This process reduces the application time by removing approximately 40 keystrokes from the traditional application process.
The second tool, patent-pending Frictionless Mobile Credit, uses proprietary technology to auto populate a credit card application, thereby reducing the application time by 25 percent. A customer texts a customizable word, such as “Apply,” to a phone number that is consistent across the store’s brand and location. The customer then receives a reply text prompting him or her to click on a link. When the customer clicks on the link, he or she is asked to enter two pieces of personal information, such as a zip code or the last four digits of a social security number. Frictionless Mobile Credit uses this information to verify the applicant’s identity and pull data from a variety of sources to populate the credit card application.
See how the tools work:
Convenience for shoppers
By shortening the amount of time it takes the consumer to apply and be approved for a store-branded credit card, Alliance Data also hopes to lessen the number of abandoned credit card applications. According to McKenzie, “Our research shows a double-digit abandonment rate during the traditional mobile credit application process, and we have already seen an 83 percent reduction in that number as we begin to implement these and other mobile and digital application tools that streamline the process and save time for consumers.”
I.D. Self-Scan and Frictionless Mobile Credit are currently being used in partnership with several national retailers, with plans for a wider release within the next several months.
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