PSCU Announces $100 Million Tech Investment, Plans for More Contactless Cards

The St. Petersburg, Fla.-based CUSO PSCU will invest $100 million over the next three years in technology and digital experiences, according to an announcement.

The investments will help fuel what PSCU called an end-to-end payments platform in an integrated environment.

“The focus will be on accelerating the development of technology, solutions and operational initiatives, including modernizing existing infrastructure, leveraging cloud technology, and driving efficiencies through robotics and artificial intelligence,” it said in an announcement.

Additionally, PSCU will invest more in Lumin Digital, which is the CUSO’s cloud-based digital banking platform.

The CUSO also announced this month that it has distributed more than 500,000 contactless cards to members from 14 credit unions so far in 2019, and it expected to produce more than three million new contactless cards for more than 100 credit unions in 2020.

PSCU said much of its owner credit unions’ contactless card distribution has occurred through natural reissuance and that its efforts next year would also support mass reissuance strategies.

“The number of consumers using a contactless payment method is expected to increase as more merchants turn on their Near Field Communication (NFC) technology and begin accepting tap-and-go forms of payments, including cards, wearables and other devices,” PSCU said.

“Credit unions should be prepared to not only offer contactless cards to their members, but also have information readily available to educate members on how to use these new payment methods and ascertain whether a merchant’s point-of-sale terminal is contactless-enabled,” PSCU Digital Experience and Payment Products Managing Vice President Jeremiah Lotz added.

PSCU’s recent “Eye on Payments” study found that about one-fourth of respondents had contactless cards and used them at least a few times per month. Convenience, ease, speed of use and security were the primary reasons for contactless card use, according to the study. The biggest reason consumers did not use their contactless cards was that their favorite stores didn’t accept them yet.

The study also reported that nearly 96% of respondents made online purchases at least a few times per year, and 57% of credit union members and nonmembers made online purchases at least a few times per month.