FRAZER, Penn.-Organizers of a credit union-owned payment card have postponed the pilot of the secure card until next year, while they work to raise money for the project in a very difficult financing environment.
"We still don't have all of our funding nailed down," said Deb Jones, vice president of Members Gateway, the credit union incubator that is organizing the project. "Credit unions are holding on to their money."
The project, known as Xcard, has raised $2.8 million from credit union limited partners so far and has another $800,000 in commitments, still short of the $6-million goal to bring the card to market. Organizers are talking to outside investors, including venture capital firms, but have been unable to fill the gap yet, according to Jones.
The combination of the onset of the holiday spending season and the ongoing economic crisis has also complicated a proposed pilot for this fall, she said.
