Payments and Lending Converge: Reinventing History or the Wave of the Future?

The financial services industry has entered a new era where technology determines the brand experience, what customers do, and where they go next. In terms of payments, there is a growing interest as an important brand touch point and an opportunity to add value. This, combined with the new forms of lending, has brought about a new and increasing way of shopping.

Buy Now Pay Later (BNPL): POS loans provide short-term consumer loans exactly where and when they are needed. This is in stark contrast to traditional loans that often require extensive paperwork that takes time to prepare and approve.

So what is driving these changes?

Meeting customer needs in context: Customers are impatient, demanding, more likely (or able) to buy if financing is available, and more likely to buy if payment is supported by POS financing. In addition, COVID-19 and the decrease in the use of credit cards have contributed to the increase in the use of this method of purchase.