The Members Group (TMG), a Clive-based credit union payment services company, has entered into a strategic partnership with a large California-based credit union servicer it formerly competed with.

The companies say the collaboration will enable them to serve more than 40 percent of the credit union industry and 33 million payment card holders. Prior to the agreement, TMG on its own serviced 3 million cardholders.

The two companies will continue to offer products under their own brands, operate independently and work within their existing management structures, but cross-sell all of their respective products and services. CO-OP Financial Services invested an undisclosed amount in TMG as part of the agreement.

Both companies are owned by credit unions and specialize in providing credit, debit and prepaid cards, and person-to-person payment solutions. TMG is the primary distribution channel to financial institutions of Dwolla Corp.’s location-based payment system.