Mobile Payments 2.0: How CO-OP is Redefining the World of P2P

November 15, 2016 Co-op Solutions

Woman making a contactless payment with her smart phone for a new bike.

Fintech is advancing quickly, bringing a host of new mobile payment options to a world of consumers on the go. From Apple, Samsung, Microsoft and Google to Facebook, PayPal, FIS and others, never in the history of payments have so many major players vied for what many believe is such an enormous future market opportunity.

And while Apple Pay and other mobile payment options have been slow to catch on with consumers to date, industry experts expect this dynamic to shift – soon, and dramatically. In fact, according to, Euromonitor International estimates that mobile payment transactions will total approximately $3 trillion by 2021 in the 46 countries the research firm tracks.

All of which has credit unions and other financial institutions working diligently to put in place the right mobile strategy to serve their members well now and in the future.

“If you look closely at Amazon’s business model, you will very quickly come to understand today’s smartphone economy,” said Tom Brennan, Senior Product Manager for CO-OP Financial Services. “With just a few taps and in a matter of minutes, I can easily spend thousands of dollars on Amazon products ranging from laundry detergent to flat-screen TVs, and I can get same-day delivery right to my doorstep. So why can’t I get that kind of service from my financial institution?”

Thanks to CO-OP innovation, now your members can.

Making Real-Time Payments a Reality

Consumers today must often wait – sometimes days – for their payments to clear. For CO-OP client credit unions and their members, the waiting will soon be over.

CO-OP and Early Warning Services are partnering to enable members make real-time P2P payments to anyone with a U.S. bank or credit union account, by accessing the Zelle Network with RealPay by CO-OP.

Although credit unions that participate in CO-OP Shared Branching can send and receive personal payments in real-time via RealPay today, the vast majority of personal payment transactions sent outside of shared branching are processed via ACH and could take several days to show up in the receiver’s account. Accessing the Zelle Network will enable participating CO-OP credit unions and their members to send and receive personal payments in real-time to upwards of 76 million accountholders at financial institutions across the country.

The CO-OP partnership with Early Warning will enable participating credit unions to implement Zelle Network capabilities in late 2017. The work to get this done is starting now.

Early Warning’s advanced multi-factored authentication technology allows funds to be transferred immediately and securely to an email address or mobile number – which keeps routing numbers and other account data protected from fraudsters.

“The Zelle Network connects thousands of financial institutions nationwide, and is the industry’s most expansive network of its kind,” said Brennan. “And because Zelle is tightly integrated with Early Warning’s own advanced fraud detection, risk management and authentication technology, CO-OP P2P payments will be protected with the highest levels of security.”

Securing the ATM Through Mobile Self-Service

Cardless cash withdrawals are going mainstream, transforming the branch experience for consumers everywhere. And through a partnership with FIS, CO-OP is bringing the many benefits of this disruptive technology to client credit unions and their members.

Scheduled for availability in 2017 through CO-OP’s Terminal Driving services, FIS Cardless Cash enables members to complete cash withdrawals at the ATM without the use of a plastic card.

To take advantage of the technology, credit union members simply need to access their institution’s mobile banking app and pre-stage a transaction.

Once the cash withdrawal has been pre-staged, the member can go to an in-network ATM that supports cardless cash, select the Cardless Cash Access option on the home screen, and the ATM will generate a unique QR code which can be scanned at the ATM using the mobile banking app device. Once the transaction is validated, the cash is dispensed. The entire process can be completed in seconds, and can be set up in advance for greater privacy and convenience. When the cash is withdrawn, an electronic receipt can be sent automatically to the member’s smartphone.

“FIS Cardless Cash is fast, secure and proven in the marketplace,” said Terry Pierce, Senior Product Manager for CO-OP. “While the technology enhances the member experience by bringing all the simplicity of mobile into the branch, it also provides members with valuable protection against ATM skimming by keeping sensitive card data out of a fraudster’s reach.”

What’s Next for Mobile?

Brennan added, “These innovations are great examples of just how quickly mobile payment technology is advancing, particularly in the P2P space. Credit unions today should focus significant time and resources on preparing for the next generation of P2P, which promises to include new innovations for business-to-consumer payments. For example, very soon we can expect to see insurance companies transferring funds, on the spot, into the accounts of flood victims.”

Pierce reminds credit unions that while the digital payment solution represents the wave of the future for all consumers, they are already becoming a common practice within younger demographics.

“Going forward, the quality of your mobile payments tools will make all the difference in how members, and especially millennials, perceive your credit union,” she said. “To continue to grow and thrive, your mobile platforms need to remain in step with the digital experiences consumers receive in other areas of their lives.”

The original article Mobile Payments 2.0: How CO-OP is Redefining the World of P2P can be found on Insight Vault.

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