Velera Wants Consumers to Turn to Credit Unions for BNPL

The credit union service organization on Tuesday (April 7) introduced a pair of installment payment solutions: Debit Flex Payments for debit purchases and Apple Pay’s Pay with Installments for credit card transactions.

“BNPL has become an increasingly important part of how consumers manage everyday spending,” Cody Banks, Velera senior vice president for product experience and enablement, said in a news release.

“By offering customizable, real-time installment options within digital banking and card experiences, credit unions can meet member expectations for convenience and choice while deepening engagement and staying competitive.”

Velera says its Debit Flex Payments offering, powered by equipifi and now available to Velera credit unions, extends BNPL to debit card users by letting CUs provide real-time personalized installment offers.

The Apple Pay feature will become available in the second half of the year, allowing members to use their credit union card to divide eligible credit purchases into short-term installments.

The release notes that the rise of consumer adoption of BNPL — projected to $3.7 trillion worldwide by 2030 — has caused credit unions to see increasing demand for installment payment options that are simple, secure and woven into customers’ financial relationships.

Research by PYMNTS Intelligence has found that the total value of installment payments among top BNPL providers grew by 22% last year. At the same time, the number of those transactions increased by 12%, spotlighting the model’s ongoing adoption across everyday payment flows.

“This growth reflects a broader shift in how consumers approach spending,” PYMNTS wrote in a recent report, “Pay Later’s Next Chapter: Why Credit Unions Are Rethinking Installment Payments,” a collaboration with Velera.

“BNPL initially gained traction as a means of breaking up large discretionary purchases, such as electronics or furniture, into smaller payments. Over time, however, the model has expanded well beyond those use cases.”

Additional research shows that consumers now regularly depend on BNPL and card installment plans for travel, home services and events, where flexible payment timing can help consumers get a handle on their expenses.

But these consumers don’t often turn to their credit unions to find these offerings. Research found that close to half of CU members have used BNPL tools from outside companies like PayPal, Affirm and Klarna.

“In many cases, members may not even realize that their CUs could offer installment options,” PYMNTS wrote. “Awareness remains limited, particularly as third-party BNPL tools are more prominently embedded within merchant checkout experiences.”