CO-OP Launches Digital Card Issuance

CO-OP Financial Services announced Monday it is rolling out digital card issuance for credit and debit cards.

The payments CUSO, based in Rancho Cucamonga, Calif., said its Digital Card Issuance service allows card credentials to be issued directly through the credit union’s mobile app or online banking system, enabling the member to add the card to their digital wallet and begin using it within minutes.

CO-OP’s news release said only a handful of large issuers are offering digital card issuance today.

“CO-OP Digital Card Issuance solves real problems for both credit unions and cardholders,” Bruce Dragt, CO-OP’s chief product officer, said. “When a card is lost, so too is the opportunity to engage with that member. Digital issuance puts that card right back into play, delighting the cardholder and reactivating critical revenue streams for the credit union.”

The service is employed anytime a member requests a new card or at the card’s natural time of reissuance.

“Digital card issuance shortens the replacement window from five or more days to just a few minutes,” Dragt said.

Consumers have adopted remote, touchless and digital behaviors at an accelerated pace since the COVID-19 pandemic began in March 2020. Mobile wallet adoption in the U.S. jumped from 38% before the pandemic to 55% within the past year.

PSCU, a payments CUSO based in St. Petersburg, Fla., also reported strong gains in mobile wallet adoption last year as a safer alternative for card-present transactions. Most members used the Apple Pay, Google Pay or Samsung Pay mobile phone applications.

CO-OP said digital card issuance increases card usage and lowers member service costs.

“This technology topped the list of payment solutions CO-OP’s Co-Creation Council members most wanted to launch in 2021,” Dragt said. “The ultimate purpose of our payments platform is to make the rollout of advanced, highly competitive solutions simple for credit unions.”