We all have preferences, and it can be a challenge to accommodate them all for your members. While some may prefer to maintain a sense of comfort with the familiar traditional route, others may race t...
Is Buy Now, Pay Later (BNPL) a Financial Industry Trend Your Credit Union Needs to Hop On?
The financial industry evolves at a rapid pace, making it difficult for credit unions to keep up with ever-changing trends. With technology-loving consumers always in search of easier, more seamless transactions, credit unions must also continue to evolve and adapt in order to stay in the race.
As technology advances, financial trends can quickly become expectations from your members. Credit unions must meet the demands of today’s market to strengthen trust—confirming they are committed to member empowerment by providing the best financial options available.
One payment option that has boomed in popularity within the last few years is buy now, pay later (BNPL). Affirm, a BNPL fintech company, is a growing platform allowing consumers to make purchases that grant them the opportunity to pay in installments, with their latest partnership providing even more ease in making these purchases.
Don’t let your credit union fall behind. Learn more about the path you can take to keep your credit union in the race as platforms like Affirm rapidly advance alongside today’s financial trends.
Breaking BNPL News in the Financial Industry
Credit unions will want to hear Affirm’s latest announcement. They have partnered with Apple Pay, allowing users of the platform to apply for Affirm BNPL loans. Apple Pay is one of the most widely utilized mobile payment platforms and has just become an acquisition channel for Affirm, who also announced a partnership with Google Pay in December of 2023. With the fintech company allowing consumers so many payment options, where does this leave credit unions?
What This Means for Your Institution
News like this can seem jarring for credit unions. With more payment options outside their platform, members may find themselves turning elsewhere for their transactions. Any of your institution’s valued members who use Apple Pay or Google Pay will now begin receiving tempting Affirm BNPL offers, luring their payments away from your platform.
Many consumers desire flexibility when it comes to managing their finances, which means they are going to turn to the options that will give them just that. Don’t fall behind in the race for your member’s loyalty, hop on the BNPL train now!
BNPL: The Solution to Keep Your Credit Union in the Race
BNPL isn’t just a payment trend, it is a complete shift in consumer behavior—especially as it becomes increasingly embedded in the shopping process. If it isn’t embedded within your institution’s banking app, consumers will seek the convenience they desire elsewhere, and the best option they find may be a fintech.
BNPL won’t just retain cardholders, it will offer your institution and its members a wide variety of benefits, including:
Giving Cardholders Benefits They’ll Actually Want to Use
Your cardholders are searching for benefits that offer convenience within their busy lives. BNPL is a benefit for anyone, allowing access to products they may need or desire while responsibly managing cash flow. This allows for split payments on specific purchases making those expenses easier to manage, enhancing the quality of their experience with your financial institution.
Converting Transactions into Installment Loans That Drive Revenue
Meet your members where they are in today’s technologically advanced world by converting transactions into installment loans that drive revenue. BNPL can increase the value of your credit loan portfolio, which can quickly lead to higher acquisition and retention rates from your members, ultimately creating a clear path toward member loyalty and trust.
Attracting and Retaining Cardholders with the Flexibility They Want
Your cardholders lead busy lives. That’s why flexibility is key these days. The easier access your members have to transactions, the more likely they are to turn to your credit union. Buy now, pay later allows that flexibility your members crave, granting them access to a range of convenient payment options. This enhances the member experience, keeping the loyalty coming.
How equipifi Can Help Your Credit Union Stay in the Race
Don’t take second place in the race for your member’s loyalty. With today’s ever-evolving financial landscape, your members will increasingly expect BNPL options from their credit union. Elevate their banking experience by providing financial flexibility and seamless transactions that build loyalty and trust in your credit union.
equipifi® is the leading Buy Now, Pay Later (BNPL) platform for debit card issuers and the only fintech company that enables credit unions to provide the service to their members. As a partner of SWBC, equipifi has brought BNPL to over 2 million cardholders with that number continuing to grow today.
Reach out to your SWBC representative to learn more about how equipifi can keep your credit union relevant in the race of today’s ever-evolving financial industry.
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