Galileo Financial Technologies, a fintech firm owned by SoFi Technologies, is expanding its Buy Now, Pay Later (BNPL) offering that enables banks and fintechs to offer cardholders new post-purchase instalment payment options via their existing debit or credit card account.
In addition to its Galileo BNPL pre-purchase offering, the new API-enabled BNPL post-purchase offering is built for banks and fintechs looking to seamlessly deliver their customers a more flexible financing opportunity. It supports repayment options for both existing debit and credit programs within established financial relationships.
BNPL is forecast to surpass 900 million global users by 2027, presenting a tremendous market opportunity for banks and fintechs.
David Feuer, chief product officer at Galileo, commented: “This new offering bridges the gap between cards and loans and allows banks and fintechs to establish and deepen customer relationships with innovative, flexible financing options for both credit and debit customers. By expanding pay-over-time opportunities, post-purchase financing is ushering in a new era of responsible lending.
“Enhancing the accessibility of payment options is a fundamental aspect of our commitment to promoting financial inclusion. With that in mind, one of the major perks of the post-purchase BNPL offering is that it works across all merchants where credit and debit cards are accepted today.”
Post-purchase BNPL benefits
Galileo explained that post-purchase BNPL has key benefits for banks, fintechs and their customers:
- Market differentiation: FIs and fintechs can add value to their debit and credit programs with a flexible, transparent financing model.
- Entry point into lending: Galileo’s post-purchase BNPL service provides a streamlined path for fintechs that are currently only in the deposit space to enter the lending space.
- Drives incremental revenue: FIs and fintechs can tap into additional revenue through installment fees.
- Financial access: Post-purchase BNPL financing previously exclusive to credit accounts can be extended to debit accounts.
- Transparent payment terms: Unlike traditional credit card interest, post-purchase BNPL with instalment fees gives consumers the benefit of seeing the total cost associated with each purchase before committing.
- Flexible financing: Post-purchase BNPL transforms conventional debit into a dynamic financial tool, offering the flexibility to responsibly and efficiently manage money.
