PSCU To Provide BNPL Installment Payment Offering  

Payments credit union service organization (CUSO) PSCU will provide a new installment payments product in the near future. The offering, which the organization describes as a buy now, pay later (BNPL) installment plan, lets cardholders pay for purchases over a set period by splitting the purchase amount into smaller fixed payments, according to a Wednesday (Feb. 10) announcement emailed to PYMNTS.

Jeremiah Lotz, managing vice president of Digital Experience & Payments at PSCU, said in the announcement that the demand for installment payments has greatly increased. “In keeping with our commitment to delivering innovative digital payment solutions, our Installment Payments offering will be designed to provide credit unions a real opportunity to meet that demand, while also increasing cardholder engagement and providing positive member experiences — which will eventually turn into new revenue streams,” Lotz said.

PSCU will start testing installment payments with credit unions soon, with a general release to follow. The initial phase of offering will enable post-purchase installment payments paid over a set timeframe for a fixed amount, while letting credit unions tailor the standards for their respective installment products. PSCU’s installment payments offering, which harnesses technology from Fiserv, will connect with PSCU’s Digital Xperience (DX) collection of digital offerings and will be accessible through application programming interfaces (APIs).

“With Fiserv, PSCU is enabling new Installment Payments offers to be delivered to credit union members. This technology benefits members by providing more flexible ways to pay and positions PSCU to effectively compete in the new buy now, pay later space,” Katie Whalen, senior vice president, North America Credit Processing at Fiserv, said in the announcement. “We look forward to continuing to partner with PSCU to bring new capabilities to market as consumer purchasing and financing opportunities continue to grow and evolve.”

The news comes as BNPL choices are garnering interest from consumers in different income brackets and seemed particularly popular among top earners during the Black Friday shopping holiday. Recent PYMNTS data indicates that two times as many consumers earning over $100,000 harnessed BNPL that day, in contrast to those making under $50,000 or in the range of $50,000 to $100,000.