One of the island’s largest credit unions announced Thursday it has switched to the Mastercard-brand payment system, linking itself to counterparts in the national credit union league.
The City of Bridgetown Co-operative Credit Union Limited introduced the OneUnion card. The move will provide the capacity for smaller credit unions to offer card payment services to their members and is vital for the future of the island’s credit unions, said Hally Haynes, president of the Barbados Co-operative and Credit Union League.
But even as the system was launched Thursday morning, Haynes expressed concern that credit unions remain particularly vulnerable with the move to EMV [Europay, MasterCard® and Visa®] cards, with the end of the Caribbean Integrated Financial Services Inc.(CariFS).
With all non-cash transactions in the economy singularly tied to a foreign-based solution, the development represents an economic liability that has serious implications for credit unions compared to other financial institutions, he added.
Haynes said: “It also leaves us vulnerable to the same sort of disruption which resulted when the CariFs network was condemned by its owners. While this is of expressed concern to all local card users, it is of special significance to us in the credit unions whose operations are restricted by licence to Barbados.
“While other financial institutions can derisk, divest or move their bases of operations to other more attractive domiciles, the very nature of our businesses means that we are invested in and committed to Barbados in a way that others are not, as such we more than others, need to address any ecosystems inadequacies where they occur as a negative impact on credit union operations will also be a disproportionate one.”
Haynes stressed that credit unions must make a shift in their strategic and operational focus to be at the forefront of emerging payment platforms.
“We need to commit to facilitating the delivery of market-relevant digital transaction solutions and product suites designed to provide our members and citizens with an alternative to outdated products and services,” he said, promising the credit union movement would roll out new digital payment solutions in the coming months.
The OneUnion Mastercard which will be available to any credit union that adopts the card allows members to manage their day-to-day transactions with their credit union.
COB President Adlai Stevenson described the introduction of the digital financial solution as a “seminal moment” noting the credit union has introduced two new cards at the height of the challenging COVID-19 pandemic.
The Barbados Police Cooperative Credit Union is the first credit union to adopt the OneUnion Mastercard.
Haynes, who is also president of the police credit union, said the move has the full backing of its members.
He explained: “The members indicated that they need to move to electronic payments given the challenges experienced during the COVID-19 pandemic. When the country was shut down only customers of the three largest credit unions could access their accounts. Members of the Barbados Police Cooperative Credit Union and any other credit union will have access to their money.”
COB’s Chief Executive Officer Glendon Belle assured there are no exorbitant fees associated with the use of the card. He noted that fees will not exceed the $3 maximum fee charge for transactions conducted at non-COB ATM as recently outlined by the Central Bank.
“If you use your card at a foreign atm, then the maximum fee you would be charged is $3,” Belle said. “It is subject to a fee of 1.20 plus 0.1 per cent of the transaction up to a maximum of $3. If you use the card at a COB ATM or [conduct] points of sale [transactions] there is no charge to the cardholder.” (SD)
