PSCU Will Provide Credit Processing for Air Academy Credit Union

Credit union service organization PSCU has teamed with Air Academy Credit Union (AACU).

The partnership will see PSCU offer AACU “comprehensive debit and credit card processing services and support,” PSCU said in a Wednesday (Dec. 13) news release.

Based in Colorado Springs, the 68-year-old AACU holds more than $895 million in assets and has approximately 50,000 members, including active and retired military service members as well as local businesses, students, educators and other professionals.

AACU began reviewing vendors for a card processing solutions provider last year, seeking a partner “large enough to leverage industry relationships and ensure long-term security,” and found PSCU to be its “ideal choice,” according to the release.

“A proven track record of seamless collaboration with credit unions and existing vendors was non-negotiable for us, and PSCU emerged as a trusted partner among our current online banking and core providers,” Air Academy Credit Union Chief Strategy Officer and General Counsel Richard F. Vaughn, Jr. said in the announcement.

PSCU will begin providing credit/debit card processing support and solutions to AACU’s members in October of next year, the release said.

The partnership is happening at a moment when credit unions (CUs) and community banks are becoming an increasingly popular choice for issuing credit cards, as PYMNTS wrote last month.

“The share of consumers with a CU or community bank card as their primary card rose from 8.3% in 2020 to 13% in 2023,” that report said. “Moreover, 24% of consumers said they would likely turn to these financial institutions for their next credit application.”

However, credit unions remain somewhat reluctant to embrace another form of credit: installment plans such as buy now, pay later (BNPL) programs.

Research by PYMNTS Intelligence and PSCU found that 39% of credit unions do not plan to offer these options to their members, and that the 41% of credit unions that do won’t be doing so within the next year.

This “reluctance to offer products that are in demand among demographic groups that are in the prime earning years may impact their ability to attract or retain members,” the study pointed out, adding that CUs might need to invest in payment innovation and technology to provide a wider range of credit products directly to their members and keep their competitive edge.