Quatrro Processing Services, a business processing company, is launching payment processing services for credit unions, community banks and other payment companies in the U.S.

"We are looking at institutions with $10 billion or less in assets. We believe that is the sweet spot out there that is looking for a change in payments processing," says Kevin Spear, senior vice president of business development at Quatrro.

Quatrro Processing Services operates as an independent, U.S.-based business unit of the Gurgaon, India-based Quatrro, which it relies on for technical support. Quatrro Processing Services is leveraging VeriFone's Payware card management platform. Quatrro will manage card fulfillment such as plastic creation and embossing, transaction processing and risk management.

Quatrro's services also include compliance with the CARD Act and PCI data security standard; mobile wallet capabilities; person to person payments; EMV-chip card support and customizable account alerts.

The company did not name its clients for the new offering, which it announced Nov. 13, and Spear says Quatrro is meeting with institutions in the coming weeks. These companies "defined some features and functions that would compel them to look for a new processor," Spear says. 

In its research, Quatrro found smaller financial institutions want a customizable payments processing service—"they're concerned about a trend toward 'one size fits all' and want more than one flavor," Spear says. 

At the same time, smaller issuers are also looking for consultation and data analysis, he says.

"They want to be told, 'here is what we are seeing based on your book of business. And here is what you should do and what you should not do,'" Spear says.

The base platform and data center are provided by VeriFone, while Quatrro manages the customization for clients, as well as the alterations to the VeriFone system, which has been primarily used outside the U.S.

"We had to change fields to 'Americanize' the platform," Spear says. That process  handles differences in how addresses and dates are listed in the U.S. and other countries.

Credit unions are also becoming active in mobile payments, with CU Wallet building a mobile wallet to compete with the telecom-led Isis wallet or the retailer-led Merchant Customer Exchange.

"Without question, the lines between banking and payments are begging to blur giving banks and credit unions somewhat of an advantage over other stakeholders," says Jordan McKee, an analyst at Yankee Group.

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