(December 4, 2013) -- credEcardplus, the UK’s leading e-money current account, Visa debit card and loyalty programme, today reports a sharp increase in partner issuing contracts nationally, as credit unions, housing associations and other welfare support agencies take urgent steps to arm the UK’s 1.5m unbanked benefit claimants with the prerequisite e-banking facilities needed to receive Universal Credit.
In recognition of an impending ‘Universal Credit crisis’*, a national total of 79 credit unions, housing associations and other support agencies are now issuing credEcardplus to members who, despite being excluded from the traditional banking system, will be required to open an account in order to receive monthly Universal Credit e-payments. As the new benefits system rolls out in 2014, unbanked claimants will also be in critical need of the initiative’s free online budgeting Envelope Facility which has been designed help them manage the sudden increase in personal financial responsibility that Universal Credit will impose.
The credEcardplus team is working extensively with both individual and partnered welfare support organisations in order to tackle the problem. Since January, the team has agreed contracts with 27 new credit unions together with an additional seven housing associations in recent months.
Commenting on Medway Credit Union's adoption of credEcardplus and on the benefits of working with the e-money industry, Councillor Vince Maple, Medway Labour Group Leader, adds: "Partnerships of this kind demonstrate the value of credit unions as an ethical financial alternative. I have been critical of high-cost options such as payday lenders for some time, so seeing our community credit union offer an even wider range of inclusive financial options to Medway residents is a great move and one I am sure people will welcome. Overall, it is great to see partnerships between credEcardplus and credit unions supporting local communities through ethical and sustainable financial services."
In response to both increased market demand and in recognition of his significant contribution to the growth of the credEcardplus business, Geoff Leech, former Head of Partner Development has been appointed Managing Director, credEcardplus. Geoff will draw on 20 years of financial planning and rollout experience to drive the strategic direction of credEcardplus. Balvinder Basran and Esme McQuillan also join the expandingcredEcardplus team as Partner Development Managers in order to better support the organisation’s growing network of issuing partners.
“The IT problems that are delaying the rollout of Universal Credit are, in many ways, a blessing in disguise; neither claimants nor welfare support agencies are ready to cope with the impact of Universal Credit,” adds Geoff Leech, Managing Director, credEcardplus. “We are working with Medway Credit Union to help them prepare their unbanked members for the onset of Universal Credit in order to mitigate the disruption that the new system will cause. Thinly staffed credit unions all over the country will be flooded with requests for guidance and financial assistance. Social housing associations face mass rental arrears. Vast numbers of unbanked claimants will suddenly find that they have no means of receiving the benefits to which they are entitled. e-money solutions, like credEcardplus offer a no-cost solution to the problem, but agencies must act quickly if they are to give their members time to adjust to the demands of the new system.”
By partnering with credEcardplus, housing associations and credit unions – like Medway, Citysave and Riverside – are able to support those they serve with the required budgeting tools and account facilities at no cost to them. Cardholders benefit from an e-account capable of supporting standing orders, money transfers, bill payments and ATM withdrawals. Earlier this year, credEcardplus also launched its Envelope Facility, a new budgeting tool that is designed to help account holders avoid getting into financial difficulties by ring fencing essential funds for rent, care provision and utility bills, for example, leaving the remainder of their monthly income free to spend or withdraw as cash.
"These services are of crucial importance right now,” adds Leech. “Our solution not only enables consumers that have been marginalised by the traditional banking sector to receive Universal Credit’s single, electronic benefits payment, but also to take control of their financial affairs. The partnerships we are building deliver basic banking facilities to a sector of society that is so often overlooked, which is why we are seeing such demand."
About credEcardplus & Contis Group Ltd
The credEcardplus solution is wholly owned and operated by Contis Group. Founded in 2008, Contis is a recognised force in European payments technology and Visa card issuance.
As a Principal Member of, and shareholder in, Visa Europe, Contis has the capability of directly issuing Visa prepaid and debit cards in all European territories, through its fully passported FCA regulated EU E-Money licence. Contis is a certified Visa card processor for Europe and has also now entered into processing contracts for Visa’s CEMEA region. The products and services are cloud based, so they are globally deployable.
Contis’ one stop capabilities allow the group to design and deliver bespoke Visa compliant payment solutions, using its own intellectual property for mobile, web and Visa network payments processing, whilst offering all customer service functions internally through its call centres located in the UK and Latvia. A key Contis offering is its built-in loyalty engine which can be used to deliver innovative loyalty and cash-back solutions, utilising its direct transactional data manipulation capabilities based on its Visa card transaction processing knowledge.
Contis additionally offers virtual and closed loop gift card programmes, which use retailers’ existing POS and network technology and Contis’ established card distribution channels throughout Europe.