Competition for the payment transactions at the center of every credit union’s financial viability is changing and growing. Just last week, the OCC granted its first national bank charter to a fintech, Varo Money.
The startup says the charter, although conditional for now, will pave the way for it to become the first fully licensed, mobile-only bank in America. Other threats include Venmo, Amazon, and the Target REDcard, just to name a few.
Some of these challengers offer partnership opportunities — either formally, like Zelle, or by extension like the other P2P offerings that require a depository account. That includes all the Pays, Apple, Google, and Samsung to name but three.
Other new payment options disintermediate entirely. For example, Target’s debit REDcard takes funds directly from a checking account via ACH, preventing the cardholder’s financial institution from earning interchange income.
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