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Credit unions that process credit cards through PSCU/Co-op Solutions' legacy systems can now offer their cardholders a buy now, pay later (BNPL) solution, the newly-combined organization announced last week.
The St. Petersburg, Fla.-based payments CUSO, which officially became a single enterprise as the result of a merger between PSCU and Co-op Solutions Jan. 1, said a new BNPL solution supports clients of the legacy Co-op ecosystem, while a BNPL solution is also available to clients of the legacy PSCU organization.
The solution allows credit unions to customize certain features, including fees, APRs, transaction limits and duration of repayment windows, according to the CUSO. It also noted that legacy Co-op's offer management service determines transaction and member eligibility for credit unions that choose to offer the solution, while the Co-op Developer Portal allows credit unions to seamlessly integrate BNPL into their digital banking experiences. What's more, all reporting and analytics for the BNPL solution flows through the legacy Co-op Insights Center, and member support is enabled through Co-op Springboard and available through Co-op Contact Center.
For participating credit unions' member credit cardholders, the BNPL solution is presented through their credit union's mobile app or online banking and allows them to choose qualifying transactions that they wish to pay off incrementally. Completion of a loan application is not required for members to take advantage of the BNPL solution.
"Our buy now, pay later solution offers a payment experience that enables members to exercise spending power on their terms and within the context of their lifestyles," PSCU/Co-op Solutions Product Development Director Nelson Fisher stated. "Cardholders tend to pay off term loans at faster rates than credit card balances. For credit unions, that behavior equates to lower charge-off rates, reduced delinquency and fewer balance transfers."
BNPL has grown into a mainstream offering over the past few years, with 360 million consumers having used it as of 2022, according to Juniper Research. What's more, a 2022 CFPB study found the total value of BNPL loans grew by more than 1,000% from 2019 to 2021.
Fisher added, "New and tenured competitors alike are standing up innovative business models to meet consumer demands for hyper-personalized financial experiences. This is creating a fiercely competitive consumer lending environment for credit unions and PSCU/Co-op is here to help support short- and long-term strategies to meet these challenging times."
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Natasha Chilingerian
Natasha Chilingerian has been immersed in the credit union industry for over a decade. She first joined CU Times in 2011 as a freelance writer, and following a two-year hiatus from 2013-2015, during which time she served as a communications specialist for Xceed Financial Credit Union (now Kinecta Federal Credit Union), she re-joined the CU Times team full-time as managing editor. She was promoted to executive editor in 2019. In the earlier days of her career, Chilingerian focused on news and lifestyle journalism, serving as a writer and editor for numerous regional publications in Oregon, Louisiana, South Carolina and the San Francisco Bay Area. In addition, she holds experience in marketing copywriting for companies in the finance and technology space. At CU Times, she covers People and Community news, cybersecurity, fintech partnerships, marketing, workplace culture, leadership, DEI, branch strategies, digital banking and more. She currently works remotely and splits her time between Southern California and Portland, Ore.
