The company will use the new funding to expand its reach to financial institution partners and to deepen the capabilities of its product, it said in a Thursday (May 14) press release.
“BNPL has become the third pillar of how consumers pay alongside debit and credit, and that shift is permanent,” equipifi founder and CEO Bryce Deeney said in the release. “Financial institutions are best positioned to own this space, and equipifi is building the network that will power them.”
The equipfi platform enables banks and credit unions to add flexible payment solutions to their digital banking experience, according to the release.
By doing so, they can enable their customers to access these solutions from an institution that has already earned their trust.
Dan Ahrens, managing partner at Left Lane Capital, which led the funding round, said in the release: “We believe equipifi is building the defining network for flexible consumer payments across financial institutions.”
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The PYMNTS Intelligence report “Pay Later’s Next Chapter: Why Credit Unions Are Rethinking Installment Payments” found that 49% of credit union members have used BNPL offerings from companies outside their financial institutions.
The report also found that 38% of credit unions said they would likely use BNPL if offered by their financial institutions.
Bringing BNPL activity in-house can help credit unions better understand their members’ needs, tailor supportand preserve engagement, according to the report.
In April, equipifi announced that it partnered with credit union service organization (CUSO) Velera to enable Velera’s credit union clients to launch their own in-house BNPL products through equipfi.
In March, equipifi partnered with CUSG, a provider of solutions in human resources (HR) technology, marketing technology and financial empowerment, to allow credit unions that work with CUSG to offer BNPL solutions within their digital banking app.
When North Dakota-based North Star Community Credit Union announced that it launched a BNPL program powered by equipifi, the credit union’s vice president of operations, Yvonne Fossen, said in a press release that the program provides “a digital-first, accessible, and responsible tool that empowers our members to manage their budgets, handle life’s unexpected costs and move forward with confidence.”
