The demand for credit cards is constantly growing, with banks increasing the share of sales through digital channels and enhancing their usability. Compared to debit cards, credit cards are specific products associated with a range of conditions. Therefore, it is crucial for banks to ensure that cardholders use their features correctly without exposing themselves to financial risks. This task is facilitated by well-designed credit card UX in mobile banking.
In the summer of 2021, at the request of a major payment system, we conducted a study on the user experience of credit cards in digital channels:
From more than 300 identified practices, we selected four examples demonstrating how UX can educate credit card holders on proper usage and motivate them to make purchases more frequently: explaining the specifics of the product, reminding about mandatory payments, reducing user anxiety, and timely transferring funds to the credit card.
The researchers focused on 22 banks: 8 local banks were selected from the leaders of the Mobile Banking Rank 2020, and 14 international participants were suggested by the client based on their own expertise. The study examined digital channels, including mobile applications and online banking.
In each local bank, we personally opened a credit card, made transactions, studied the product's presentation in the interface, explored the main and additional functions, made payments, and settled the debt. In the international banks, agents carried out the same process for us, recording screencasts and noting all communications from the banks.
The study covered the basic user journey of a credit card: from acquiring the product to fully repaying the debt.
Several criteria were used to select the best practices: the practice had to be unique in the market, simplify and speed up the user's task, and be highly digital—allowing users to complete tasks within the interface without involving a bank manager.
Based on these criteria, researchers described over 300 best practices that form the ideal user experience for a credit card. The results of the study were provided to the client’s partner banks, enabling them to compare their digital services against market trends and enrich their backlogs.
These practices are completely digital and unique, as well as they simplify and speed up solving user tasks.
Quality onboarding
It helps both customers gain financial literacy and banks encourage customers for proper further usage of the product and cut customer service costs. Customers can use a credit card in the wrong way: withdraw cash with large fees, misunderstand how the interest is calculated, and what a minimum payment is. These risks can be avoided with onboarding mechanics and helpful reference materials in the app.
A guide with the through search or in-app learning videos that explain the key usage specifics of the product can also be used. For the mobile app users learning videos will be more clear and convenient.
Visualizing due dates helps plan working with credit funds
A lot of banks remind customers about the credit card due date on the main screen and show the payment amount. Each time launching an app customers see the reminder and plan their expenses to avoid past due.
The best solutions for these reminders are color accents used in upcoming due date messages, simple date visualization, diagrams, or a countdown timer.
For example, a progress bar on the main screen can be used, tapping on which will lead to the payment page. While getting closer to the due date, the bar turns red — this is an understandable visual signal.
Auto top-up for credit cards lowers the risk of past due
The bank can back up customers with multiple kinds of auto top-ups: from one’s personal account, from other cards, or other sources. For example, the app can automatically save a draft of the top-up from other banking cards, offer to make a draft on the success screen, or offer setting up the auto top-up from the linked cards of other banks (even multiple ones simultaneously to spread the amount conveniently) to make sure that all the dues are paid in time.
The saved auto top-ups need a separate interface where customers can see all the info about the payments, edit them (credentials, timing, and amount), or delete them.
Managing the credit limit allows flexible control over expenses
Customers need to be able to set up a convenient due date for the minimum payment, lower or raise the credit limit, and get the loan repayment holidays without contacting a bank manager.
Managing the credit limit not only helps customers raise the loan amount when needed, but also take a vice versa step — lower the limits. It’s convenient to manage the credit limit on one page: the customer enters the needed amount oneself and gets the result almost immediately.
These are the 4 brightest solutions to keep customers safe from using credit cards the wrong way. The greatest effect can be achieved by working out the user experience of credit card holders in general: easy and convenient product, affordable and clear conditions, a fully-fledged digital experience, control, and flexible card management.
This case study demonstrates a strategic approach to increasing engagement of credit card holders through digital transformation. By partnering with Markswebb, the client successfully aligned its services with user expectations, implemented key improvements, and positioned itself as a leader in credit card user experience.
Every year we conduct up to 15 studies of digital services. These are industry benchmarks that reflect the state of the market and trends.