CULedger has showcased a proof-of-concept form of its electronic, cross-border funds transfer payment offering, CUPay, for credit unions.

Based on R3’s Corda blockchain platform, the payment solution is being developed in alliance with Luxoft. The solution leverages CULedger’s decentralised identity technology.

CUPay will provide near-instant, cost-effective and secure payment options for credit unions using CULedger’s network. It enables both domestic and international payments.

In addition, the offering aims to provide more funds transfer options in a transparent process.

CULedger chief experience officer Julie Esser said: “Current payment methods, especially cross-border payments, rely on outdated, slow technology laden with risk.

“CUPay gives credit unions and their members an alternative option – one that is more secure, protecting both members and the organisation, and more efficient, in terms of speed, cost and transparency.”

R3’s Corda platform is for organisational identity on CUPay, while CULedger MyCUID technology is for personal identity. Corda allows CULedger to add future payment rails.

The new electronic funds transfer solution is designed to avoid manual entry of recipient details. It also comes with in-built compliance management.

R3 chief revenue officer Cathy Minter said: “CUPay will enable credit unions to move even-closer towards cross-border payments that are executed seamlessly and successfully.

“That is why R3 is proud to be the partner to support CULedger’s initiative, which will allow its members to transact more efficiently.”

The payment solution will launch next year on CULedger’s digital exchange network.