Maximize Value Across the Entire Customer Lifecycle
Longer, more comprehensive application process More detailed credit check – recorded on credit report, may affect credit score Have to wait for credit approval + credit card to arrive Only interest-free during initial repayment window, no installment payments required Credit limit provided with card – credit is available to use as you wish
No or minimal application process
‘Soft’ credit check – not reported on credit report, won’t affect credit score
Instant access to funds
Installment repayment plans, usually interest free
Credit limit is usually purchase-dependent
No annual fees; no interest (unless you fail to pay installments)
Interest + annual fees
Perks ranging from cash back + reward points to airport lounge access + free flights Major credit cards accepted almost everywhere Payments are recorded against credit report + do improve credit score
Typically no additional perks
Not as widely offered
Loan repayments aren’t recorded against credit report + don’t improve credit score
of current BNPL customers think it could replace their credit cards
like the flexibility offered when paying for something ‘later’
62%
31%
feel more responsible breaking purchases into smaller payments
of BNPL customers in the U.S. are repeat customers who use BNPL at least once a month
36%
22%
of users want to avoid paying credit card interest
of BNPL users trust BNPL providers more than credit card companies regarding fair business practices
47%
30%
• The global BNPL market will grow to upwards of $33.6 billion by 2027 • During the Covid-19 pandemic, the value of credit card transactions in the United States dropped by approximately 11% • Half of consumers in Generation Z don’t own a credit card • 43% of consumers in Asia Pacific are willing to increase their spending by at least 15% if allowed to pay in installments
Protect consumers with blended approach • Ensure consumers have option to build credit with BNPL borrowing • Offer additional rewards or perks (travel, points, cash back)
Offset declining credit card transactions by looking at BNPL as an opportunity • Integrate point-of-sale financing into purchases to reduce friction, grow sales and improve customer experience • Engage with future generations of borrowers by offering flexibility and options for longer-term growth potential • Lower interest rates or offer installment options
• More personalized products and superior customer experiences • Increase in sales and market share • Reduction in cart abandonment • More inclusive digital economy and better service for the underbanked • Promotion of responsible lending and spending
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