PSCU has launched a solution that helps credit unions implement buy now, pay later (BNPL).
The credit union service organization’s (CUSO’s) new Installment Payments solution allows some post-purchase credit card transactions to be converted into installment payments, PSCU said in a Thursday (April 27) press release.
This solution gives cardholders a flexible payment method that helps them budget and plan for larger purchases, according to the press release.
“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,” Cody Banks, managing vice president, payments, fraud and loyalty at PSCU, said in the release.
PYMNTS research has found that consumers’ demand for BNPL has surged.
PSCU’s Installment Payments solution lets credit unions use member data to customize the criteria for installment plans, according to the press release.
With this solution, credit unions can select offers and eligibility and set monthly payments with a fixed APR, the release said.
“What sets PSCU’s new solution apart from other financial service providers is its ability to use existing lines of credit, enabling credit unions to deliver the right installment plans to the right members,” PSCU Chief Product and Digital Officer Denise Stevens said in the release. “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.”
PYMNTS research has found that credit union members are especially interested in innovative products, and 27% are willing to switch where they hold financial accounts to find them.
To keep up with their members’ appetites for innovation, more than half of credit unions are partnering with consultants or CUSOs to drive product innovations this year, according to “Member-Focused Innovation is CUs’ Challenge in 2023,” the March edition of the “Credit Union Tracker®,” a PYMNTS and PSCU collaboration.