Many people are using mobile and digital wallets to use their credit cards and discount cards. I'm not currently a user but would become a user with the value add described below.
Some popular mobile and digital wallets include:
One of the features of the digital wallets is to define a default card. One problem is you can only select one default card which is not a solution to the bigger problem. You want to select specific cards for specific stores, store types, foreign currency, for a given period of time, until a dollar amount is reached, business expense, and many more variables. It is time for the wallets to make this process easier.
Here are some examples of cash back rewards credit cards which you might use for different purposes. Some cards have annual fees and others do not so I won't go into that detail. Also, the cash back has changed over time on the cards. The following are the % of the reward based on category and foreign fee is % you pay for using the card in another country/currency:
| Credit Card | Foreign Fee | Default | Gas | Restaurant | Entertainment | Groceries | Home Improvement Stores | Airfare | Office Supply Stores | Wireless Phone Service |
|---|---|---|---|---|---|---|---|---|---|---|
| Amex SimplyCash | 3 | 1 | 3 |
5 |
5 |
|||||
| Citi Double Cash MC |
3 | 2 |
||||||||
| Citi Costco Anywhere Visa |
3 | 1 | 4 |
3 |
3 |
|||||
| Chase Business Ink Visa |
3 | 1 | 3 |
3 |
3 |
3 |
||||
| Amex Blue Cash |
3 | 1 | 2 |
3 |
||||||
| CapitalOne QuickSilver |
0 |
1.5 | ||||||||
| CapitalOne SavorOne |
0 |
1 | 3 |
2 |
2 |
Now that you have all this information and have a few of these example cards. Why should you have to remember which card to use at each location. Instead when you walk into an office supply store the default should be your Amex Simply Cash, then you go to the grocery store and your Amex Blue Cash is your default, and when you go for a fill up on your Gas powered vehicle (if you have one of those) then the Citi Costco Anywhere Visa would be used. When no special case is found then the Citi Double Cash MC would be used and the CapitalOne QuickSilver when paying in a foreign currency. There are exceptions, for example Citi Costco Anywhere Visa gas does not offer 4% at supermarket/superstores (except at Costco). You might have multiple employers or be self employed and need to switch between these modes based on the situation.
You would rather not have to remember all of this and instead have your mobile or digital wallet give you a little help.
Here are solutions to incorporate into these wallets:
- When in the store, save your default card and that card will be used in the future in that store. Can use location based information to save the default card. Can go a step further and ask if you want that to be the default for all stores with that name (chain of stores). Can ask if you want it to be the default for all stores of that type.
- When at checkout for a new store, identify the store type (gas, restaurant, groceries, etc), check against the various cards in the wallet and suggest best card to use. Can lock in a card as your default for that store, that store type, or accept the card selected by the wallet so it can change over time. Some cards offer special category discounts for a small window of time (a month) or dollar amount ($2,000 per year), the wallet can see that special temporary offer and make that card the default for that store type and then switch to a better card when that offer expires.
- You specify which card to use for each store type with overrides when needed and expiration dates when a card has a short term special or dollar amount for a given store type. Sometimes cards have a discount at a specific store for a short period and you would make that card the default for that specific store over that given period. Some cards have a maximum spend per year on a given category and then the reward rate drops, when the reward drops, a different card with a better reward rate would be made the new default until the new year begins.
- There are also non-reward issues to address. Some cards have car rental insurance, extended warranties on purchases, travel insurance, etc. Those need to be taken into account when selecting a card or default card for a given purchase type.
- Some cards give discount at specific stores or uses - Costco, specific Airline, specific gas station card, etc. Ex: CapitalOne SavorOne has a 5% on Uber Eats through until February 1st 2021 and that same card excludes superstores from the grocery stores.
- A mode selection feature to select when in personal mode, business mode (more then one business supported to select).
These are complex problems to solve while keeping the user interface simple, yet flexible. Hope this is helpful to the digital/mobile wallet companies to improve their products.
