April 27, 2023 – PSCU, the nation’s premier payments credit union service organization (CUSO) and an integrated financial technology solutions provider, has announced the general availability of its new Installment Payments solution. This launch follows a successful pilot program with a select group of the CUSO’s credit union partners.
A buy now, pay later (BNPL) offering, PSCU’s Installment Payments solution enables cardholders to divide purchase amounts into smaller payments over a fixed period, giving members more flexibility to budget as needed and take greater control over their finances. The solution allows specific post-purchase credit card transactions to be converted into installment payments, providing a flexible payment method for cardholders while creating new revenue streams for credit unions. Additionally, PSCU’s solution lets credit unions customize the criteria for installment plans based on member data, which informs realistic repayment terms that minimize delinquency risks.
“PSCU is proud to expand the availability of this new tool, which offers benefits to all of our Owner credit unions and their members,” said Cody Banks, managing vice president, Payments, Fraud and Loyalty at PSCU. “When developing this technology, we prioritized enhancing members’ financial wellness and offering cardholders flexible digital payment options to help with budgeting and planning larger purchases, empowering users with the opportunity to decide how and when they pay. 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.”
Key capabilities of PSCU’s Installment Payments solution:
- Enables credit unions to select offers and eligibility for increased control and flexibility
- Utilizes cardholders’ existing credit lines
- Provides credit unions with the ability to set monthly payments with a fixed APR
- Empowers cardholders to take an active role in their individual financial wellbeing
- Provides convenient access through PSCU’s suite of market-leading digital solutions via APIs
“This technology positions PSCU and its credit unions to effectively compete in the BNPL space, which should be a consideration for all credit unions and partners when it comes to growing portfolios, attracting new accountholders and offering elevated solutions to members,” said Denise Stevens, chief product and digital officer at PSCU. “What sets PSCU’s new solution apart from other financial services providers is its ability to use existing lines of credit, enabling credit unions to deliver the right installment plans to the right members. 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.”
PSCU’s Installment Payments solution comes at a time of increasing consumer demand for innovative digital payment solutions, including installment payment options. According to the PSCU 2022 Eye on Payments study, 60% of respondents who know their financial institution offers a BNPL solution report they have used it. Among those who do not know if their financial institution offers BNPL or know it does not, 32% say they would likely use it.
For more information on PSCU’s Installment Payments solution, visit pscu.com/bnpl-installment-payments.
PSCU, the nation’s premier payments CUSO and an integrated financial technology solutions provider, supports the success of more than 2,400 financial institutions and processes nearly 7.7 billion transactions annually. Committed to service excellence and focused on continuous innovation, PSCU’s payment processing, fraud and risk management, data and analytics, digital banking, strategic consulting and real-time payments platforms, along with 24/7/365-member support via its contact centers, help deliver personalized, connected experiences. The origin of PSCU’s model is collaboration and scale, and the company has leveraged its influence on behalf of credit unions and their members for more than 45 years. Today, PSCU provides an end-to-end, competitive advantage that enables credit unions to securely grow and meet evolving consumer demands. For more information, visit pscu.com.