The Credit Union Service Organisation for Payments (CUSOP) has been granted a payment institution license by the Central Bank of Ireland that will allow credit unions to provide electronic payment services to members nationwide.
The new service will allow credit union members to have payments from a bank, employer or social welfare office paid directly into their credit union account by electronic transfer.
According to CUSOP, the service will be available to all credit unions in Ireland and will be rolled out to Northern Ireland credit unions in due course.
Danske Bank has been appointed to provide the infrastructural support and services to enable the electronic payments using the Sepa (Single Euro Payments Area) clearing infrastructure.
“The vision driving this initiative is that all credit unions who wish to provide payments services should be in a position to do so, thereby enabling them to provide more and better services to their members in the future,” said CUSOP CEO Kevin O’Donovan. “CUSOP has created the infrastructure for much needed electronic payment services for credit unions who wish to offer electronic fund transfers for their members. We know that these services are in demand by members and that credit unions are eager and willing to offer them – we have now delivered the means for them to do so in a safe and secure environment.
“We are also looking into the possibility of adding the ability to sell structured settlement payments on top of the wide array of services we already offer.
“We are a firm supporter of the National Payments Plan announced by Government earlier this year and we believe that reforming our payments system will provide cost competitiveness, greater security, and convenience for 3.1 million credit union members nationwide,” said Kieron Brennan, CEO of the Irish League of Credit Unions. “The granting of this license is a very significant step forward for credit unions members nationwide and will allow them an option to manage their finances in the future through credit unions.”
What is a Credit Union Service Organization?
Credit Union Service Organizations, also referred to as CUSOs, are best described as corporate entities that are owned by federally insured, state credit unions. And yes, they can be federally chartered as well. There are regulations that restrict credit unions from only investing or making loans to CUSOs that primarily service the public as credit unions. Credit union members are eligible to receive said services.