The news: Ascend Federal Credit Union launched a debit card-linked installment offering through a partnership with equipifi, per a press release.

The bigger picture: Ascend follows a growing list of credit unions and smaller banks launching their card-linked installments through white-label providers.

• Since July, Pioneer Federal Credit Union, Michigan State University Federal Credit Union, First Financial Federal Credit Union, and United Heritage Credit Union all launched installment offerings in partnership with equipifi.
• Splitit has also been growing its white-label offering through regional and community bank tie-ups. It partnered with DCX Technology in October to help smaller banks offer card-linked installments.

Why this matters: These smaller banks and credit unions are trying to compete with major debit card issuers. Citi, Chase, and American Express all offer credit card-linked installments, but only Chase offers something similar for its debit card. Smaller banks therefore still have a bit of an early mover advantage by launching these programs.

Our take: It’s difficult for credit unions like Ascend to compete with the top issuers on credit card programs. They lack the necessary funds and resources to launch expansive credit card rewards offerings.

But they have a better chance of competing for customers’ business when it comes to debit cards. Offering perks like card-linked installments can set their programs apart and draw in customers who are looking for more flexible financing options without applying for a new credit card. This may particularly be attractive to younger consumers—a demographic credit unions are desperately trying to gain business from.