CPI & Velera Renew 20-Year Pact to Power Credit Union Payments

LITTLETON, Colo. – March 31, 2026 – In a move that underscores the value of long-term stability in a rapidly evolving financial technology landscape, CPI Card Group (Nasdaq: PMTS) has renewed its multi-year strategic service agreement with Velera. The extension solidifies a partnership that has spanned more than two decades, ensuring CPI continues as the primary payment card partner for Velera, the nation’s premier payments credit union service organization (CUSO).

The agreement provides critical infrastructure and continuity for the more than 4,000 credit unions across North America that rely on Velera for payment solutions. It comes at a pivotal moment when these community-focused financial institutions are navigating the complex challenge of modernization, seeking to adopt innovative digital services while maintaining the reliable, secure payment infrastructure their members depend on for daily transactions.

A Foundation of Trust and Consistency

The endurance of the CPI-Velera relationship, lasting over 20 years, is a testament to its strategic importance for both organizations and the credit unions they serve. For two decades, CPI has provided the essential backbone for Velera's payment card programs, from card manufacturing and personalization to delivering the digital solutions that power modern payments. This long-standing collaboration has provided a consistent and predictable foundation, allowing credit unions to confidently plan and manage their debit and credit card portfolios.

This consistency is crucial for maintaining member trust and brand recognition. By ensuring a seamless supply and personalization of payment cards, the partnership helps credit unions keep their brand at the top of their members' wallets. Peggy O’Leary, Chief Commercial Officer at CPI, highlighted the mutual benefits of this enduring alliance.

“Our collaboration with Velera reflects a shared focus on quality, scale and long-term value for Velera and the credit unions they support,” O'Leary stated. The renewal, she noted, underscores how such long-term collaboration is essential in helping credit unions deliver the reliable and trusted payment programs that are fundamental to member engagement and everyday spending.

Navigating the Future of Payments

While stability is a core benefit, the renewed partnership is squarely focused on the future. Credit unions face intense competition not only from large national banks but also from a growing number of agile fintech startups. To remain relevant, they must meet rising member expectations for sophisticated digital services, including instant payments, digital wallets, and flexible credit options.

Recent industry data highlights this shift. Research from Velera itself shows a growing appetite for modern financial products, with 38% of credit union members now indicating they would likely use a Buy Now, Pay Later (BNPL) option if offered directly by their credit union, an increase from 32% just two years prior. This trend signals a clear demand for integrated, innovative payment solutions that go beyond traditional card swipes.

The CPI-Velera agreement is structured to help credit unions meet this demand. “Our credit unions rely on payment solutions that help them remain relevant and competitive for their members,” said Cody Banks, SVP, Product Experience & Enablement at Velera. “For more than two decades, we’ve trusted CPI to support our needs. Extending this relationship helps our credit unions maintain strong, top-of-wallet offerings for the members they serve.” By leveraging CPI's expertise, Velera can equip its network of credit unions with the tools needed to balance the introduction of new features with the non-negotiable need for secure and uninterrupted core services.

The CUSO Model: Strength in Numbers

The partnership's impact is magnified by the unique structure of Velera as a Credit Union Service Organization. CUSOs are designed to help credit unions pool their resources to achieve the scale necessary to access best-in-class technology and services that might be prohibitively expensive for a single institution. Velera, which was formed from the combination of industry stalwarts PSCU and Co-op Solutions, provides an end-to-end portfolio that includes payment processing, fraud management, data analytics, and digital banking.

Through this model, the CPI-Velera alliance effectively democratizes access to advanced payment technology. A small, community-based credit union can offer its members the same high-quality, secure, and feature-rich payment cards as a much larger institution. This allows them to compete on service and member relationships, which are the traditional strengths of the credit union movement, without falling behind on the technological front. This collaboration is a prime example of how specialized partnerships empower community finance, strengthening local institutions and ensuring consumers have diverse banking choices beyond the megabanks.

Market Confidence and Financial Underpinnings

For CPI Card Group, a publicly traded entity, the renewal of this cornerstone contract provides a significant affirmation of its market position and business strategy. While the specific financial terms of the multi-year deal were not disclosed, securing its role as the primary card partner for a CUSO supporting over 4,000 financial institutions represents a substantial and stable revenue stream for its Debit and Credit segment. The company has demonstrated strong financial health and consistent growth, and this renewal further solidifies its standing as an integral and trusted vendor within the U.S. payments ecosystem.

The decision by Velera to continue a 20-year relationship in a competitive market speaks volumes about the perceived value and reliability of CPI's offerings. It reinforces CPI's role not just as a manufacturer, but as a critical technology partner capable of evolving alongside its clients' needs, from the initial shift to EMV chip cards to the current demand for contactless and digital issuance solutions.

Ultimately, the extended agreement between CPI and Velera is more than a simple contract renewal; it is a strategic reinforcement of the infrastructure that supports a significant portion of the American credit union industry. As payments continue to evolve, this partnership is positioned to provide the blend of reliability and innovation that thousands of credit unions will need to continue serving their members effectively for years to come.