FRAZER, Penn. – Creators of a new secure payments card are looking for financial backers among credit unions to finance a pilot and bring the “Xcalibur” card to market.
So far, 15 credit unions from across the country have invested a total of $4.2 million in Xcard Systems LLC, a CUSO which is looking for more than $6 million to fund the start-up, according to Deb Jones, senior vice president of Members Gateway, the credit union incubator that is participating in the project.
Creators of the card, which features biometric identification, met earlier this month in California with more than 100 credit union executives and representatives from CUNA Mutual Group to gauge interest in the project and to market $100,000 shares in the limited partnership. Among the early investors are: American Heritage FCU, Freedom FCU, Belco Community CU, San Antonio FCU, Mazuma CU, Nevada FCU and Keystone FCU, where Xcard creator Mark Cox has been a long-time member.
Plans call for the card to be owned and distributed by credit unions, then introduced to a larger market, including banks, according to Cox. “I’ve got control of this project through credit unions and that was my reason for doing it this way from the very first day,” Cox told The Credit Union Journal. “I want to give the credit unions something they can control.”
IBM, which is participating in the project, is putting the finishing touches on a prototype, and a pilot program among some of the investing credit unions is planned for the end of the year.
“After we get the thing financed and ready to go, then we’re going to invite the banks in,” said Cox.
Development of the card was prompted by the growing number of data breaches and their tolls on credit unions, said Cox.
The card, which can be used as a magnetic stripe, contactless or contact card, boasts cutting edge security features, including a biometric fingerprint reader that only can be activated by the authorized user(s), and it can be used at the same time as any of the major card brands, as a Visa card, MasterCard, Discover or American Express.
Cox sees the card as the platform for the next generation payments system, connecting credit union members with their ATMs, credit and debit accounts, smart cards, loyalty programs, event ticketing, membership in other entities (e.g. the gym), as well as mobile banking. “This is the new wallet of the next age,” he stated.
More information can be obtained at the website: www.xcaliburcard.com/
