'Spotpay' Deepens Ties with Business Members
CUs can offer convenience with the new mobile payments product from Fiserv.
July 22, 2013
What do a veterinarian who makes house calls, a caterer, and a farmers’ market vendor have in common? They all want to be able to take their customers’ card payments on the go.
Credit unions can offer that convenience with a new mobile payments product from Fiserv called SpotPay.
Centra Credit Union in Columbus, Ind., went live with SpotPay in early May 2013 “because we want to deepen our relationships with our business members,” says Norb Adrian, chief systems officer at the $1.2 billion asset credit union.
SpotPay allows businesses to take card payments anytime, anywhere using only a mobile phone and a card reader. Unlike similar services such as Square and PayPal, SpotPay carries the credit union’s brand, and it offers better pricing and revenue sharing, Adrian says.
Centra benefits from SpotPay “without having the risk of a huge upfront investment to develop a product like this,” he adds.
SpotPay eliminates another risk, too, says David Keenan, Fiserv’s general manager of network solutions.
If a credit union’s business members use PayPal, for instance, “then those funds go into a transaction account at PayPal,” he explains, “and PayPal issues plastic for the business to spend those funds. All of a sudden, the credit union’s relationship with its business members starts to deteriorate.”
Centra expects SpotPay to create stronger relationships with its business members.
Businesses want this type of product, Adrian says, “but they don’t really know what Square is. They trust us, so they’d rather get this service from us.”