PSCU/Co-op
New BNPL Offering Available to Issuers on Legacy Co-op Solutions Platform
ST. PETERSBURG, Fla.– Credit card issuers that process with legacy Co-op Solutions now can offer their cardholders a new buy now, pay later (BNPL) option from PSCU/Co-op Solutions, according to the CUSO.
According to the company, which began operating as a combined entity on Jan. 1, the new BNPL solution supports clients of the legacy Co-op ecosystem, while the combined company also offers a BNPL solution for clients of the legacy PSCU organization.
“Cardholders whose credit unions sign up for the new solution may choose qualifying transactions to pay back, like a term loan,” the company said. “With the BNPL solution, offers are presented to cardholders through their credit union’s mobile app or online banking, and participation is simple. Cardholders do not need to complete a loan application to take advantage of BNPL.”
Consumers Quickly Adopt BNPL
PSCU/Co-op Solutions noted the launch comes at the same time more than 360-million consumers have now used BNPL to make purchases.
“The popular payment method appeals to financial institutions as much as consumers, given its potential to serve as an important revenue stream and to attract younger customers,” PSCU/Co-op Solutions said, noting the total value of BNPL loans grew by more than 1,000% from 2019 to 2021, and that 80% of BNPL users are between ages 25 and 34.
“Our buy now, pay later solution offers a payment experience that enables members to exercise spending power on their terms and within the context of their lifestyles,” said PSCU/Co-op Solutions Product Development Director Nelson Fisher. “Cardholders tend to pay off term loans at faster rates than credit card balances. For credit unions, that behavior equates to lower charge-off rates, reduced delinquency and fewer balance transfers.”
Customizable Components
The company said the new BNPL solution has many customizable components based on the credit union’s needs. Issuers can choose components from fees and APRs to transaction limits and duration of repayment windows.
In addition, Fisher said the solution enables front- and back-end touchpoints that enhance its performance and the member experience. Legacy Co-op’s offer management service does the heavy lifting of determining transaction and member eligibility, and the Co-op Developer Portal makes it simple for credit unions to integrate BNPL with their digital banking experiences.
All reporting and analytics for BNPL flows through the legacy Co-op Insights Center, and member support is enabled through Co-op Springboard and available through Co-op Contact Center, PSCU/Co-op Solutions said.
‘Innovative Business Models’
“New and tenured competitors alike are standing up innovative business models to meet consumer demands for hyper-personalized financial experiences,” said Fisher. “This is creating a fiercely competitive consumer lending environment for credit unions and PSCU/Co-op is here to help support short- and long-term strategies to meet these challenging times.”
For info, and to view the informational webinar from legacy Co-op’s Latest Insights page, go here.
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