Credit Union BNPL Could Give Members a Safer Way to Pay

Central Indiana-based Financial Center First Credit Union recently became the first credit union in The Hoosier State to offer its members a credit union-branded buy now, pay later (BNPL) service through its digital banking platform.

The aim of Financial Center is to give members greater control over day-to-day spending and allow them to split purchases into clear and predictable installment payments offered directly within the credit union’s digital banking experience.

Kyle Endres, Vice President of Communications at Financial Center, told us the credit union launched the new product because members wanted more flexibility when making payments.

A Safer Alternative  

Through the installment-based product, Financial Center said it wanted to offer a safer alternative to members than the BNPL services offered by third-party providers.

Endres said some third-party BNPL models can make it easier for users to overspend or stack debt across multiple offers.

Credit unions are beginning to tap into offering in-house BNPL alternatives that can compete with companies like Klarna, Afterpay, and Affirm.

“Our approach keeps everything in one place while also providing access to our signature financial coaching and wellness tools along the way,” Endres said.

A Careful Rollout to Credit Union Members

Only Financial Center members with a track record of positive financial habits were selected for the BNPL product availability when it launched to approximately 11,000 members in May 2026.

“We take our members’ financial well-being seriously, so we have set stipulations that only allow this service offering to be shown to members who are already demonstrating healthy financial habits,” Endres said. 

There are no hard credit pulls and prepayment penalties with the BNPL product at the credit union, Endres said.

Advice for Credit Union Members Using BNPL

The credit union encourages its members to use BNPL for help in managing unexpected expenses and said the product is not designed for shopping sprees.

“If you have an unexpected and urgent expense — such as an auto breakdown or home repair — this can provide breathing room and predictable payments. This product is not designed to encourage impulse or unnecessary spending,” Endres said.

Credit union members are asked to review a BNPL payment schedule carefully before signing up. Endres advises that members should check to see if a BNPL purchase will fit into their monthly budget before buying anything. 

Working With equipifi

The credit union launched its new product with the help of Scottsdale, Arizona-based equipifi, a BNPL-focused fintech founded in 2021.

Bryce Deeney, Founder and CEO of equipifi said in a press release that Financial Center is helping to put their members in control of their spending and that the credit union also offers personalized support throughout the BNPL process.

Not the Only Credit Union With BNPL Services

While Financial Center is the first credit union in Indiana to offer the product, other credit unions outside the state have also begun offering BNPL-style installment options to members.

For example, Achieva Credit Union in Florida allows members to shop with their debit cards and then split payments over time. Members choose from three-month, six-month, and nine-month repayment periods.

At Financial Plus Credit Union in Michigan, among several credit unions that have also partnered with equipifi, members may shop with the credit union’s debit card and pay over time for purchases between $200 to $2,000.