BNPL Installment Plan Now Available Through PSCU

When it comes to digital payment trends, consumers have spoken loud and clear – they want Buy Now, Pay Later (BNPL). According to PSCU’s 2022 Eye on Payments study, 60% of respondents who know their financial institution offers a BNPL solution have used it, and among those who do not know if their financial institution offers BNPL or know it does not, 32% said they would likely use it.

The St. Petersburg, Fla.-based CUSO answered the call for BNPL options with the launch of a new Installment Payments solution, which is now to available to all of its credit union owners following a pilot of the solution.

Credit unions utilizing PSCU’s Installment Payments solution can divide specific post-purchase credit card transactions up for members to pay off over a set period, and will have the ability to customize the criteria for payment plans based on member data. The solution can be accessed through PSCU’s suite of digital solutions or via APIs, utilizes cardholders’ existing credit lines and enables credit unions to set monthly payments for members with a fixed APR, according to PSCU.

“PSCU is proud to expand the availability of this new tool, which offers benefits to all of our owner credit unions and their members,” Cody Banks, managing vice president, Payments, Fraud and Loyalty at PSCU, said. “When developing this technology, we prioritized enhancing members’ financial wellness and offering cardholders flexible digital payment options to help with budgeting and planning larger purchases, empowering users with the opportunity to decide how and when they pay. It is also a chance for credit unions to promote their credit card as the card of choice for members interested in a BNPL offering, ultimately driving increased interchange revenue, deposit balances and overall credit union brand visibility.”

Denise Stevens, chief product and digital officer for PSCU, added, “This technology positions PSCU and its credit unions to effectively compete in the BNPL space, which should be a consideration for all credit unions and partners when it comes to growing portfolios, attracting new accountholders and offering elevated solutions to members. What sets PSCU’s new solution apart from other financial services providers is its ability to use existing lines of credit, enabling credit unions to deliver the right installment plans to the right members. This not only presents less risk, but it truly allows members to rely on their credit union as their trusted financial partner now and in the future.”

In an interview with CU Times in early April, PSCU President/CEO Chuck Fagan acknowledged the risks of BNPL to consumers, explaining that PSCU’s solution was “built in a way that respects budgeting and financial wellness.”

“So ours utilizes the existing credit line from the credit card account. And ours is post-transaction, so the consumer can decide, ‘Hey, I want to pay for this transaction with a portion of my reward points and I want to pay the rest on a Buy Now, Pay Later setup.’ So, it’s a little bit different in the way that we’ve done it,” he said at the time.