New Payments Corporate Forming Out Of U.S. Central
NCUA has given the green light to an organizing committee to proceed with forming a payments corporate out of the present payments-related functions at U.S. Central Bridge. Some 14 corporates have indicated agreement in principle to capitalizing this new, special purpose corporate which will be distinguished by its narrowly focused range of activities–“only payments related,” said Brandt Peterson, executive vice president at SunCorp and a member of the organizing council for the payments corporate.
Peterson indicated that NCUA has reviewed the proposed corporate’s business plan and has given the go-ahead for circulation of the document to prospective members. This process will continue into the summer, said Peterson.
Among the to-do’s for the organizing council is picking a name for the corporate.
The new corporate will not provide any liquidity or investment products and services.
What it will provide, said Peterson, is a gamut of payments-related services, from international wires to ACH and bill pay.
Aside from its specific focus on payments, this prospective corporate will be differentiated by seeking to serve only corporates who, in turn, will be the owners.
The advantage to taking this route, said Peterson, is “continuity of service. This will be a seamless transition for present customers of U.S. Central Bridge.”