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Why Credit Unions Should License Payment Technology

Does your credit union use technology to make things easier for members?

Mambu, Salesforce, Microsoft Office 360, Google G Suite, and Leasewave

What do these software companies have in common? Two things:

  1. Banks and credit unions commonly use them
  2. The software is licensed, not purchased

These software companies are doing everything from providing email services to managing customer data and lease transactions to serving as core banking systems. And they do it all in the cloud through software licensing, commonly referred to as SaaS or software as a service.

Banks and credit unions have been moving towards the cloud from on-premise software more slowly than other industries. This Credit Union 2.0 tech trends article, however, places cloud as one of the seven areas expected to grow in the future. The other six areas are:

  • Digital Transformation
  • Fintech Partnerships
  • Marketing Automation
  • Analytics
  • Artificial Intelligence (AI) & Machine Learning
  • IT Security

Payments: Fast, Convenient, and Profitable for a Credit Union

Do you know what technology hasn’t changed that much for credit unions? Payment technology. The basic premise is still there. Members want an easy way to pay for services and pay back loans.

Does your credit union make this easy for members?

Payment services represent a massive opportunity for credit unions to engage with members and exceed their service expectations.

Payment System Technology

Until the chip and pin cards and EMV (Euro Mastercard and Visa) hit the U.S. a few years ago, there had been virtually no change in payment technology. Visa and Mastercard are still the leading card brands controlling much of the standard operating procedures and interchange rates when it comes to card transactions. All this is still true.

But now, most of the advances in payment systems are in security, automation, and the use of AI.

Since cloud can mean enhanced security and PCI compliance, there’s no reason not to utilize third-party payment technology platforms. Credit unions can take a modern fintech-based payment system and license its use without having to develop and maintain these advanced tech systems for themselves.

Why build the infrastructure of a new payment system from scratch when the latest and most secure payment technology advancements are at your fingertips and could be licensed and implemented in a matter of weeks?

Licensing for Credit Unions

Some payment companies, including REPAY, let you license their suite of payment technology products, including online payment portals, text pay platforms, IVR (Interactive Voice Response) / phone pay, and mobile apps. These solutions can be customized for each credit union, so the look, feel, and voice of the credit union can be captured. Often, the members will never know the payment platforms they are accessing belong to anyone other than their credit unions.

Offering convenient and modern payment services can give credit unions a competitive advantage over smaller or more conservative financial institutions. Utilizing specific channels, such as text pay and mobile apps, can increase the number of touchpoints credit unions have with their members, thereby promoting engagement and strengthening the member – credit union relationship. There is no reason why credit unions can’t offer the same payment options the big banks do.

With core banking software, credit unions can often pick which modules they want to use. You can license the ones most applicable to your credit union without having to buy things you don’t need. Licensing of payment systems allows this, too.  Your credit union will stay at the forefront of technology, maintain the highest-level security, and give the greatest flexibility and convenience to your members while only paying for the parts that you use.

Is your payment system in need of an upgrade? If it is, or you want to see how some of the best payment software in the industry works, contact us today for a demo.

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