Alliance Bank is offering seamless and secure transactions through digital cards and dynamic card numbers
Virtual credit cards (VCCs) are a modern and innovative financial solution, offering a range of benefits in the digital landscape. These digital cards operate within partner mobile apps, eliminating the need for physical cards. One significant advantage of VCCs is their role in creating a collaborative ecosystem.
Merchants can seamlessly integrate VCC services into their mobile apps, encouraging increased spending on their e-commerce platforms with greater security. This not only ensures secure transactions but also avoids compromising credit card details.
Dynamic solution
Malaysia-based Alliance Bank’s VCC is a unique open-banking solution integrated into partner mobile apps. VCC works similarly to physical credit cards but exists only in a virtual form. With this approach, the bank has eliminated the need for paper and plastic through VCC services such as QR payments and in-app transactions. These services are bundled into a secure software development kit (SDK) that can be easily added to the bank’s merchant partner mobile app.
This forward-thinking solution empowers merchants to provide credit services, which drives increased spending. It offers customers a secure and convenient payment method without concerns about compromising their credit card details.
Enhanced flexibility
Alliance Bank’s VCC customers enjoy the flexibility of using their cards across various participating merchant partners’ platforms, fostering collaboration within the ecosystem to offer diverse product and service offerings. Furthermore, the adoption of VCCs aligns with environmental, social, and governance (ESG) principles. By eliminating paper forms and plastic cards, this financial innovation contributes to a more sustainable and eco-friendly approach.
Growing numbers
Alliance Bank’s proactive approach to online credit card security, especially during the pandemic, has revealed an increased threat to customers’ credentials due to security breaches. The surge in online purchases during this period highlighted a significant gap in the current design of credit cards for online transactions.
In April 2023, Alliance Bank introduced the dynamic card number (DCN) feature, another first in Malaysia. This has added an extra layer of security and enabled customers to apply for a fully digital VCC, transact with a randomly generated dynamic card number for one-time or subscription payments and manage their cards on their mobile phones.
The bank’s digital customer experience streamlines VCC application and ensures near-instantaneous card approval and provisioning, enabling customers to apply for the VCC anytime, anywhere. This eliminates the need to wait for the bank to courier physical cards.
Since the launch of the bank’s VCC DCN feature, the number of fraud cases and losses has significantly reduced. As a result, Alliance Bank has witnessed an increase in customer receptivity towards VCC, with a 57% increase in average spending compared to physical credit card spending. Additionally, active VCC customers spend 45% more monthly than customers using traditional credit cards.
Alliance Bank has won the Best Open Banking Initiative and the Most Dynamic Third-Party Collaboration awards at the Annual Retail Banker International Asia Trailblazer Awards 2024.