Equipifi to Add Pay-in-4 BNPL Option for Debit Card Issuers

Equipifi will add a new white-label buy now, pay later (BNPL) option for debit card issuers in 2024.

The new Pay-in-4 option will allow consumers to convert transactions to installment plans at no interest, to be paid back in four equal payments every two weeks, Equipifi said in a Wednesday (Dec. 13) press release.

“Previously only available from third-party BNPL providers, Pay-in-4 is attractive to first-time BNPL users due to the clarity of its terms and the short repayment timeline,” the release said.

The new offering is designed to help banks and credit unions drive adoption of their checking account and debit card products and compete against direct-to-consumer FinTechs, according to the release.

Equipifi’s Pay-in-4 option will be offered to banks and credit unions through its BNPL solution embedded in core banking and digital banking offerings, the release said.

Because cardholders must meet certain criteria to qualify to use this payment method, Pay-in-4 will encourage them to deepen their relationship with their debit card issuer, per the release.

“Megabanks are entering into the BNPL arena to join successful third-party providers like Affirm, PayPal and Apple, which have gained market share in debit card and BNPL solutions,” Equipifi Co-founder and CEO Bryce Deeney said in the release. “Pay-in-4 not only helps thousands of banks and credit unions stay competitive but also helps serve the consumers who call these financial institutions home for their banking needs.”

PYMNTS Intelligence found that 70% of consumers want access to BNPL plans offered by banks rather than FinTechs.

Consumers who plan to use BNPL products want to trust their credit provider, which is where the bank may hold some advantage, according to “Banking on Buy Now, Pay Later: Installment Payments and FIs’ Untapped Opportunity,” a PYMNTS and Amount collaboration.

The report found that 12% of consumers cited trust as the most important factor in selecting a credit product.

In another recent development, FedFinancial Federal Credit Union (FedFinancial FCU), which serves federal employees and their family members in Washington, D.C., and Baltimore, said Monday (Dec. 11) that it has partnered with Equipifi to launch a BNPL solution for its members.