Haynes said PaySwag found many different payment options for those willing and able to make a payment.

“What if you are not ready, willing and able, then what? That is where this is different,” he said.

PaySwag partnered with PayNearMe to provide payers with a PayCode they can use to make cash payments for loans, bills and fines. PaySwag then embeds PayNearMe's barcode system into a mobile phone along with payment and push reminders that require consumers to opt in.

If a biller offers PayNearMe as a payment option, they send the payer the PayCode via email, text message or printed card. Consumers can also download the PayNearMe app in the Google Play and Apple App stores, and follow the instructions to add billers to the app.

They can then visit a nearby payment location and present the PayNearMe PayCode to the cashier, along with cash. More than 17,000 PayNearMe locations accept payments, including 7-Eleven, Family Dollar and ACE Cash Express stores nationwide. Cashiers scan the PayNearMe PayCode on the phone or printed card, accept the cash and provide a receipt as proof of payment.

Typically the creditor will help the consumer with the onboarding process.

Payers receive rewards for making payments, and sometimes they receive rewards for taking other actions, such as making a double payment. PaySwag also pushes videos when people are late and offers rewards for watching the videos.

In an initial case study, a lending company that implemented the PaySwag platform experienced a 50% reduction in severely delinquent loans and brought in $3.5 million in recouped debt, Haynes said.

“Engagement was high, the adoption rate was tremendous and delinquencies were reduced,” he added.

Rewards and gamification dramatically increase engagement – something credit unions that interact with PaySwag will need to invest in it, according to Haynes.

“They still have to be interested in serving a certain demographic for our platform to make sense,” he added. “We're not trying to teach engagement to the top tier level.”