The deep dive: Digital credit card

By Puja Sharma

‘The deep dive’ is our bi-weekly exploration of a relevant topic, hot trend, or new product. For Prime subscribers only.

The credit card, a trade staple for the past 3 decades, is currently certain a significant overhaul. However, the maximum amount as it’s a serious time for the industry, it’s additionally the foremost unimaginable time for the consumer, because the game of enticement has begun. The COVID-19 pandemic ensured that a whopping 45% of retail clients transitioned to virtual shopping. It has vastly more suitable the cashless transaction market, something credit score card unions are eager to capitalize on. This way higher security, decrease fees, facilitation of contactless payments, and plenty extra to make existence convenient.

How does it work?

Digital Credit Cards, additionally referred to as Virtual Credit Cards, are similar to your regular credit score playing cards, however, to be had handiest in a digital form. These playing cards are certainly a prolonged model of your plastic playing cards and are designed to carry out handiest whilst you do online transactions. So, your credit score card company may also provide you to switch a few restrict of your current credit score card to a virtual credit score card or also can offer you an extra restriction above your current credit score card restrict. You will obtain all of the vital details, consisting of credit score card number, expiry date, etc. of your virtual credit scorecard, which you could effortlessly get entry to online.

Who is under the radar?

Chetwood Financial announced the launch of Wave, the digital bank’s first-ever credit card, empowering customers to control their spending and manage their finances over the long term.

Designed by customers for customers, the Wave credit card offers flexibility and ease for near-prime consumers who typically have fewer credit options available to them, with less functionality. Those who apply for a Wave card are provided with a pre-approved real rate and their credit limit upfront so they can make an informed decision, without affecting their credit score.

• Fast and secure access with biometric login, plus document and selfie matching to confirm the identity
• Ability to add the card to Apple Pay or Google Pay to make secure payments instantly
• Card freezing and unfreezing capabilities in case of loss or theft
• Changing repayment amounts should customers want to pay more
• Alerts to help customers control spending and monitor outgoings to improve financial behaviour
• UK-based customer support through live chat

The Wave credit card will offer credit limits of £250-£1,750 to new applications, increasing up to £10,000 over time based on customers’ eligibility. Customers can opt in and out of credit limit increases and decrease their limit at any time through the app.

As part of the Wave offering, Chetwood has also launched a Repayment Calculator to encourage better financial behaviour and help customers understand how interest works on credit cards. By using the easy in-app tool, customers can see how paying a little extra than the minimum payment each month can reduce the amount of interest and clear their balance quicker.

Wave is the fourth banking product launched by Chetwood, having brought its first lending product LiveLend, the world’s first dynamic loan, to market in November 2018. The Livelend Reward Loan uses technology to adapt to customers’ good financial behaviour, reducing their loan rate when their credit score improves. The product helps encourage customers to further improve their financial position whilst offering a fast, fair and flexible way to borrow.

Why does it matter?

A digital credit card may be used to steady your online transactions and keep away from any fraud, as it’s far the maximum handy and steady manner to make online transactions. Virtual credit card numbers are designed to protect the banking information of users safe while shopping online. These offer a sense of security from hacking incidents and since these generate one-time use credit card numbers, cardholders don’t have to worry about online thefts or data leaks.

This guarantees that the consumer can employ the virtual credit score card’s general restriction. Available at zero expenses – Currently, maximum credit score card issuers provide those playing cards freed from cost. Therefore, clients do now no longer want to pay any expenses at the same time as availing those playing cards. Can be Used for National and global transactions- Digital credit score playing cards may be used for each countrywide and global transaction. This permits cardholders to effortlessly make online purchases.