Is buy now pay later the next scourge on consumer finances?

Many consumers using Buy Now Pay Later products are avoiding taking on credit. The problem is they actually are still taking on debt. They just don't have the opportunity to boost their credit scores by doing well and paying off debt, and many of those consumers also end up taking out a loan or overdrawn their accounts just to pay off the Buy Now Pay Later.

What can credit unions do? Start with education. First and foremost, consumers need to know what they're getting themselves into whether they join your institution or not. Look for organizations like BALANCE that can help provide consumer counseling for your members coaching helping them to reach financial stability and empowerment. Organizations like Ser Tech, which helps you not only reach these consumers, but also provide credit scores and education so they can better understand their credit and what it means. 

Credit unions offer credit cards, secured loans, unsecured loans, personal loans, payday alternative loans, many options for consumers to consider, while you’re educating them about what it does for their credit or against their credit. 

Second: Outreach. Obviously reach more consumers because credit unions are the best financial services opportunity for them. We really need to be able to get out there and share our stories more. With the modern consumer. Most of the BNPL users are younger generations – exactly the people that credit unions want to reach, so meet them where they are, offer an option to bring them into the credit union while meeting them where they are in their financial journey. 

Finally, make it convenient. Everything needs to be front and center on your website because that's how most people are going to find you. Companies like uncommn Marketing Partners, Your Marketing Company, Ser Tech, they can all help bring people into your website, so you can teach them more about credit unions, about your credit union and how your products and services can help. Make your applications simple. Make them easy to find. Make it easy to make the wise choice.