Equipifi Debuts ‘Pre-Purchase’ BNPL Tool for Banks, Credit Unions

Buy now, pay later (BNPL) platform equipifi has introduced a “pre-purchase” solution called “Plan Your Purchase.”

The new offering lets financial institutions offer account holders “flexible financing” before they make purchases, according to a Tuesday (July 30) press release.

“There are many moments in an account holder’s lifetime when timely access to small loans make a big difference,” Bryce Deeney, co-founder and CEO of equipifi, said in the release.

“By streamlining the loan acceptance process and positioning it in the digital banking experience, Plan Your Purchase helps financial institutions give account holders access to cash flow they already qualify for wherever and whenever they need it.”

According to the release, Plan Your Purchase lets eligible account holders take out pre-qualified installment loans — typically between $500 and $2,000 — from their financial institution.

The program requires no credit check, application or manual intervention from the bank or credit union, as eligibility is determined by parameters set by the financial institution, as well as the financial context of account holders.

The offer comes as consumers show a desire for BNPL options. The PYMNTS Intelligence report “Divided, Not Conquered: Acquirer and Merchant Confusion Clouds Split-Payments Landscape,” created in collaboration with Splitit, found that roughly half of Generation Z and millennial shoppers had used BNPL at least once in the last year, with 23% of them increasing their BNPL usage in that period. In addition, 79% of BNPL users said they were very or extremely satisfied with the experience.

Meanwhile, the PYMNTS Intelligence and AWS report “Tracking the Digital Payments Takeover: What BNPL Needs to Win Wider Adoption” found that the chief drivers of BNPL usage are convenience, financial security and extra purchasing capability.

In other BNPL news, the Consumer Financial Protection Bureau’s (CFPB) new rules governing the lending practice went into effect Tuesday, though companies in the industry are still advocating for changes to the regulations.

In a letter to the bureau last week, BNPL company Affirm pressed the CFPB to revise proposed regulations for buy now, pay later loans, calling on the agency to establish specific rules for BNPL products rather than applying existing credit-card regulations.

“Requiring BNPL providers to comply with rules designed for open-end credit cards creates compliance challenges and confusing outcomes for consumers,” wrote Affirm Chief Legal Officer Katherine Adkins. “The actual information Affirm must include on the account opening disclosure is largely unhelpful and likely confusing.”