SWIVEL integrates with Apple Pay

This integration allows credit unions and community banks to accept loan payments through the mobile wallet, enhancing the ease of money movement for financial institutions and their customers.

Traditionally, financial institutions have limitations on payment methods for consumer and auto loans, often not accepting certain forms like credit cards. SWIVEL's integration with Apple Pay addresses this issue by automatically filtering the cards in a consumer’s Apple Pay wallet, presenting only those that are valid for loan payments. This feature simplifies the payment process for customers and improves the effectiveness of payment reminders sent via mobile channels.

The integration, developed using the Apple Pay software development kit (SDK), is now available to over 800 financial institution clients across the US. This development supports the needs of SWIVEL’s credit union and bank partners by enhancing digital banking experiences and improving loan payment performance.

Challenges in loan payments

Financial institutions face significant challenges when it comes to accepting loan payments, particularly due to the limitations on acceptable payment methods. Many institutions do not allow credit card payments for loans because of high processing fees and the increased risk of chargebacks. These limitations mean that customers must often rely on alternative payment methods such as bank transfers or checks, which can be less convenient and slower. Additionally, certain payment methods can introduce delays in fund transfers, leading to potential late fees and a more complicated payment process.

These restrictions not only inconvenience customers but also have broader implications for financial institutions. When customers encounter difficulties making payments, it can lead to increased customer service inquiries and complaints, putting a strain on resources. Furthermore, the friction in the payment process can result in higher delinquency rates as customers miss payment deadlines due to the complexities involved. This can negatively impact the financial health of the institution, increasing the cost of collections and potentially leading to higher loan losses.

As a result, financial institutions that fail to address these payment challenges risk losing customers to competitors who provide a more seamless and convenient loan payment process.