PSCU offers installment payments solution powered by Fiserv
By Pavithra R
PSCU, the nation’s premier payments credit union service organization (CUSO), has announced offering a new Installment Payments solution.
Through the new Buy-now, pay-later (BNPL) instalment plan, cardholders can pay for purchases over a fixed timeframe by dividing the purchase amount into smaller fixed payments, thus giving CU members the freedom to budget as needed and have greater control over their finances.
“The demand for this convenient payment option has grown tremendously as consumers look to play more active roles in managing their financial lives and has been further accelerated by the COVID-19 pandemic, which has driven consumers to look for more ways to budget and improve their finances. 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,” said Jeremiah Lotz, managing vice president, Digital Experience & Payments at PSCU.
According to Visa and Klarna insights, when provided with the option of an instalment payment plan, consumers’ average ticket size increases by 50%. The research found that with BNPL solutions, consumers tend to spend more, leading to additional revenue for FIs. However, there is also a 20% increase in repeat purchases when instalments are offered. Consumers can also enjoy various benefits from the convenience of buy now, pay later without applying for a new line of credit. With post-purchase instalments, CU members are using line of credit with their trusted credit union.
The first phase of PSCU’s Installment Payments offering will feature post-purchase instalment payments paid over a fixed amount of time, for a fixed amount, and will enable CUs to customize the criteria for their respective instalment offers. The payments solution will also integrate with PSCU’s Digital Xperience (DX) suite of digital offerings and will be available through APIs. The solution leverages technology from Fiserv, a leading global provider of payments and financial services solutions. PSCU will begin piloting Installment Payments with CUs shortly and will be followed by a general release.
“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. 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,” said Katie Whalen, senior vice president, North America Credit Processing at Fiserv.