With an industry like retail, who drives the need for innovation? Is it the big banks and brands that have the resources to develop new payment methods and marketing strategies without taking on big risks, or is it the unproven entrepreneurs who pursue game-changing ideas regardless of the cost? Or, more likely, is it a combination of big players and smaller operations that come together for truly innovative means?
A recent partnership between MasterCard and CO-OP Financial Services proves that the last option is more than just a viable one. The two organizations announced Tuesday (Dec. 1) that they had joined forces to give credit union members the ability to use cards issued from their cooperatives when shopping online or through a mobile app. The service from MasterCard, known as MasterPass, is already in use in 24 countries and at more than 250,000 merchants, and this reach is a major reason why Stan Hollen, president and CEO of CO-OP, decided to partner with MasterCard in the ongoing battle to win over more shoppers to the digital payments ecosystem.
“CO-OP is committed to partnering with credit unions to help them deploy a digital eCommerce solution that fits the needs of their members,” Hollen said in a statement. “MasterPass is an important piece of a comprehensive digital eCommerce strategy and complements digital wallets, such as Apple Pay, Android Pay, Samsung Pay and others.”
Tapping into the pool of consumers who keep their money with credit unions seems like a lucrative move, as the Pennsylvania Credit Union Association counts more than 100 million Americans enrolled in credit unions nationwide. In total, this population accounts for more than $1 trillion in assets, and making a fraction of this cash mobilized through seamless payments is a no-brainer for retailers looking to remove as many obstacles as possible in the path to purchase.
