PSCU/Co-op Solutions has unveiled a new buy now, pay later (BNPL) option for credit card issuers.
This solution allows cardholders to enjoy greater flexibility and convenience when making purchases, the company said in a Tuesday (Feb. 6) press release.
PSCU AND Co-op Solutions merged Jan. 1 to form a single enterprise to become a credit union service organization (CUSO) and financial technology solutions provider, the release said.
As part of the integration process, the company has developed this BNPL solution that caters to clients of the legacy Co-op ecosystem, the release said. Another BNPL solution is available for legacy PSCU organization clients.
With the new BNPL solution, cardholders can select qualifying transactions to pay back, similar to a term loan, per the release. These offers are presented to cardholders through their credit union’s mobile app or online banking platforms. Cardholders are not required to complete a loan application to use BNPL.
The solution helps credit unions meet the growing demand for BNPL, according to the release. Over 360 million individuals have utilized BNPL as a payment method. Financial institutions are also drawn to BNPL due to its potential as a significant revenue stream and its ability to attract younger customers.
The new BNPL solution is customizable, allowing issuers to tailor various components based on their credit union’s specific needs, the release said. From fees and APRs to transaction limits and repayment windows, credit unions have the flexibility to choose what works best for them and their cardholders.
To enhance performance and member experience, the solution offers front- and back-end touchpoints, per the release. Legacy Co-op’s offer management service determines transaction and member eligibility, while the Co-op Developer Portal simplifies the integration of BNPL with credit unions’ digital banking experiences.
All reporting and analytics for BNPL flow through the legacy Co-op Insights Center, and member support is enabled through Co-op Springboard and available via Co-op Contact Center, the release said.
PSCU and Co-op announced their plans to merge in November.
When the companies announced Jan. 2 that they had closed their agreement to combine, Chuck Fagan, CEO of the new organization, said: “Today marks the start of an exciting journey as we bring together two teams with similar values and cultures — both built on the foundation of the ‘people helping people’ credit union philosophy — to begin working collaboratively as associates of our new combined company.”