The Members Group and Co-op Financial Services have entered into a strategic partnership to create the largest payment-services provider for credit unions, the companies announced Jan. 5.
Combined, the two companies serve more than 40% of all U.S. credit unions and provide payment services to nearly 33 million cardholders.
The agreement follows Co-op’s recent acquisition of U.S. Central Bridge’s online and mobile bill-pay business after the National Credit Union Association could not to find a buyer for the failed corporate’s payments operations (
Those operations are now being wound down as other providers seek to offer alternatives.
The arrangement is focused on providing better service, Stan Hollen, Co-op president and CEO, said in a press release.
“This is really about the coming together of two credit union-owned payments organizations that will put together the best processing platform for each natural-person credit union’s unique needs,” he said.
The agreement also gives the new entity greater scale to improve efficiencies in both services delivery and technology development, Shazia Manus, The Members Group CEO, added in an interview. “This is a pivotal time for credit unions,” Manus said.
The larger array of payments offerings also will allow credit unions to bundle more services, which could lead to lower prices, added Hollen.
Under the agreement, Co-op has made an investment in The Members Group, but both companies will continue to offer products under their own brands, operate independently and work within their existing management structures. Both companies announced they will cross-sell all of their respective products and services.
Together, The Members Group and Co-op provide core payment products, including full-service credit, debit, ATM, prepaid and person-to-person payment products and services.
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