Digital payments company Payrailz is launching CU Payz, a new credit union service organization.
The new CUSO has six founding member credit unions including Coastal Credit Union, Farmers Insurance Federal Credit Union, Georgia’s Own Credit Union, Meritrust Credit Union, Teachers Credit Union and TwinStar Credit Union.
“Credit unions need next-generation products in order to compete with banks, non-traditional offerings and fintechs,” John Carew, chief strategy officer of Georgia’s Own Credit Union, said in a statement. “To truly succeed in this environment, credit unions must collaborate on a large scale on strategic technology investments and leverage our collective influence through group buying and/or equity ownership opportunities.”
The formation of CU Payz stems from working with MEMBERS Development Co. and Constellation Digital Partners, two established CUSOs.
The new partnership creates a smarter payment experience and rolls out next-generation payment services that will grant CUs the ability to “leapfrog the current offerings in the marketplace,” Jeff Kline, president and CEO of MDC, said in a press release.
CU Payz is open to both credit unions and other CUSOs, and member credit unions will hold some influence on the future development of payment technologies and experiences that CU Payz plans to roll out.
"As the industry becomes more competitive, credit unions are looking for innovative ways to address the growing discrepancy between traditional tools built for the financial services world, and the rapidly changing fintech payments players,” Kris Kovacs, CEO of Constellation Digital Partners, said in a statement. “CU Payz is dedicated to giving credit unions the means to adapt and better compete.”
