Pidgin and Corelation Team on Real-Time CU Payments

Pidgin and Corelation have teamed to let more credit unions offer members real-time payments.

The partnership between real-time payments platform Pidgin and payments processing Fintech Corelation will let credit unions (CUs) access faster payment channels and “embrace real-time payments” based on their operational preferences and their members’ needs, the companies said in a Tuesday (May 28) news release.

“As real-time payments continue to gain traction, credit unions must be equipped with the right infrastructure to support 24/7 transaction processing, even outside of traditional business hours,” the release said.

“Since its founding in 2009, Corelation has remained focused on driving innovation in the credit union space and Corelation’s partnership with Pidgin makes it easier for credit unions of all sizes to adopt and scale real-time payments.”

PYMNTS examined the state of the real-time/instant payment world last week in a conversation with Ingo Payments CEO Drew Edwards, following the latest PYMNTS Intelligence and Ingo Payments study, which showed that there are a number of use cases where speed in payments is a necessity rather than a want.

“An instant push into a consumer’s bank account — whether it’s through the card or through RTP® or FedNow — is a better experience than cash,” Edwards said, adding that no one has ever raved about the customer experience they had when getting paid slowly or having to accept a paper check.

Still, some businesses are lagging in adoption, he said, offering the analogy that community bankers were once resistant to ATMs. They argued that no one wanted to go to a machine to get their money, and consumers would rather go into a branch, until ATMs became a competitive advantage — and eventually a requirement.

Meanwhile, PYMNTS wrote last week about credit unions’ efforts to attract younger consumers, noting that these consumers “have high expectations, and CUs need to have the right innovation roadmap.”

Research by PYMNTS Intelligence has shown that the average Gen Z consumer has used 10 products and features in the past year and would use another 18 if offered. The data shows that top-performing CUs are in a better position to meet Gen Z’s demands, currently offering 40% more products and capabilities than bottom performers.

“Gen Z shows a relatively strong interest in financial service offerings that help them pay friends and manage their spending,” that report said. “In fact, these younger members want their CUs to innovate P2P transactions and tailored debit cards more than other members. These young consumers value financial products and services that match lifestyles centered on social activities and discretionary spending.”