FedFinancial Federal Credit Union (FedFinancial FCU), which serves federal employees and their family members in Washington, D.C., and Baltimore, has launched a buy now, pay later (BNPL) solution for its members.
To power this solution, which is called SpendFlex, the credit union has partnered with equipifi, a BNPL Software-as-a-Service (SaaS) designed specifically for financial institutions, the companies said in a Monday (Dec. 11) press release.
“Our credit union is committed to providing valuable financial solutions to federal employees, and they deserve a flexible spending tool provided by their trusted financial institution,” Jonathan Rhodes, president and CEO of FedFinancial FCU, said in the release.
SpendFlex allows members of FedFinancial FCU to split their eligible debit card purchases and pay them off over time, according to the release.
By integrating equipifi with its banking core and mobile app, FedFinancial FCU can now provide personalized offers to its members based on their financial health, the release said. Members can view and accept these offers within seconds.
This solution offers immediate financing opportunities at a lower interest rate compared to other options available in the market, per the release.
“BNPL is a convenient payment method that consumers would prefer from their primary financial institution, but up to this point, could only find through third-party provider,” Bryce Deeney, CEO and co-founder of equipifi, said in the release. “Credit unions like FedFinancial FCU are rolling out BNPL as a long-term commitment to their members and their evolving payment preferences.”
PYMNTS Intelligence has found that despite the increasing demand for installment payment plans, 39% of credit unions do not plan to offer these options to their members.
Even among the 41% of credit unions that do plan to offer installment loans, none of them intend to roll out the product within the next year, according to “Credit Union Innovation: How Credit Product Rates Impact FI Selection,” a PYMNTS and PSCU collaboration.
In another recent development, equipifi said in October that it has partnered with FinTech firm Jack Henry to offer a BNPL tool to community and regional financial institutions (FIs). Via this partnership, FIs can offer split payments through debit cards.