Indiana Credit Union Challenges Fintech with In-House BNPL

INDIANAPOLIS, IN – May 13, 2026 – Financial Center First Credit Union today made a pioneering move in the state's financial sector, becoming the first credit union in Indiana to launch its own in-house Buy Now, Pay Later (BNPL) solution. The new service, offered in partnership with fintech firm equipifi, allows members to split purchases into manageable installment payments directly within the credit union's digital banking platform, marking a significant entry by a traditional institution into a market dominated by third-party tech companies.

A Member-Centric Answer to Fintech's Rise

The launch represents a direct response to the explosive growth of BNPL services from providers like Klarna, Affirm, and Afterpay. While popular for their convenience, these third-party apps have drawn criticism and regulatory scrutiny for practices that can lead to "loan stacking"—where consumers juggle multiple payment plans—and a lack of transparency that can cause unexpected financial strain.

Financial Center aims to offer a safer harbor. By integrating the service into its own secure ecosystem, the credit union provides members with a familiar, trusted interface and a single point of contact for their finances. This strategy aligns with recent market research from PYMNTS, which found that 70% of consumers would prefer to receive BNPL options from their existing financial institutions.

"We're seeing more and more people turn to quick-fix payment options that don't always have their best interests in mind," said Kyle Endres, Vice President of Communications at Financial Center, in the official announcement. "As a credit union, we have a responsibility to offer something better. This is about giving our members flexibility without the trade-offs that often come with outside lenders."

This member-first philosophy is the core of the credit union's value proposition, contrasting sharply with the often-impersonal, algorithm-driven nature of standalone fintech apps. The goal is to provide the flexibility of BNPL without sacrificing the principles of financial wellness and responsible lending.

The Technology Behind Responsible Lending

The new solution is powered by equipifi, an Arizona-based fintech founded in 2021 that specializes in providing white-label BNPL platforms for banks and credit unions. This partnership allows Financial Center to offer a modern, feature-rich service under its own brand. The integration is designed to be seamless, appearing as a native feature within the credit union's online and mobile banking, which was recently upgraded through a partnership with digital banking provider Alkami.

Members can access personalized, pre-qualified offers based on their relationship with the credit union, allowing them to see their borrowing potential without a formal application or a "hard" credit pull that could impact their credit score. The system supports two main functions: members can split an eligible past debit card purchase into installments, or they can use a "Plan Your Purchase" feature to receive funds in advance for an upcoming expense.

Unlike many third-party services, the terms are transparent, with no prepayment penalties. The entire lending relationship remains between the member and their credit union.

"Financial Center is setting the standard for responsible Buy Now, Pay Later and putting members in control of their spending with the transparency and guidance they deserve," noted Bryce Deeney, Founder and CEO of equipifi. He emphasized that an in-house solution helps members "meet present needs while building toward a stronger future." equipifi has rapidly become a key player in this space, with its platform now accessible through major banking technology providers like Jack Henry and having already partnered with over 90 credit unions nationwide.

Navigating a Shifting Regulatory Landscape

Financial Center's entry into the BNPL market is strategically timed. The sector is currently under a microscope from federal and state regulators who are concerned about consumer protection. In May 2024, the Consumer Financial Protection Bureau (CFPB) issued guidance clarifying that BNPL lenders are subject to some of the same core protections as credit card issuers under Regulation Z, including rights for consumers to dispute charges and demand refunds.

Furthermore, states like New York and California have already implemented their own regulations, requiring BNPL providers to be licensed and adhere to stricter rules on fees and disclosures. This evolving regulatory environment creates challenges for standalone fintechs but presents an opportunity for already-regulated institutions like credit unions.

By offering a BNPL product that is inherently compliant with banking regulations, Financial Center is not only protecting its members but also positioning itself favorably for the future of consumer credit. The lack of consistent reporting of BNPL loans to credit bureaus—a major point of contention for both consumers and regulators—is another area where a credit union's integrated approach could provide a more stable and predictable framework.

A New Front in the Battle for Consumer Loyalty

This initiative is more than just a new product launch; it's a strategic maneuver in the ongoing battle between traditional finance and fintech disruptors for consumer loyalty, particularly among younger demographics who are the primary users of BNPL. For years, credit unions and community banks have watched as members turn to outside apps for convenient, small-dollar financing.

By bringing BNPL in-house, Financial Center is taking a direct step to reclaim that activity, increase member engagement, and capture a larger share of their members' financial lives. The initial program launched in May 2026 to approximately 11,000 members, serving as a significant pilot for what could become a standard offering.

As the first credit union in Indiana to plant this flag, Financial Center is setting a precedent that other local and regional institutions will likely watch closely. With BNPL usage projected to grow at a compound annual rate of over 25% through 2026, the pressure on other financial institutions to offer similar competitive payment options will only intensify. This move demonstrates a path forward for community-focused institutions to innovate and compete effectively in the modern digital economy, leveraging their core strengths of trust and member service.