While it took nearly a decade for The State Bank's adoption of standard credit and debit card networks to surpass a majority of available customers, it took less then half a year for contactless payments to reach the same plateau for the Colorado-based institution.
Just four months after introduction, the $97 million bank's rollout of Bling Nation's mobile payment network reached more than 80 percent of merchants and 50 percent of consumers in its target market of La Junta, Colo.
"People like the instant confirmation of the purchase and the available balance," says Brad Rose, vp and IT security officer at State Bank of the fast adoption. He also says the service's success has been due to marketing trough incentives to tellers to cross-sell and via word of mouth.
The network enables consumers to pay for purchases with contactless NFC (near field communication) stickers attached to their mobile phones. The local network allows banks and merchants to avoid global network costs and keeping money in a defined community via a local debit network.
The institution will now look to expand the service to Colorado Springs and other markets-and is seeking other financial institutions to partner with as part of the effort.