Point-of-Sale Financing

Poised as a Leading High-Growth Offering from Banks and Fintechs

White Paper • 2020

What is this paper about?

Online and e-commerce merchants are reporting a 25% or greater lift in purchase transaction size when the consumer is able to pay in installments. It's no wonder then that fintech lending and banking startups, as well as retail banks around the world, aggressively are incorporating Point-of-Sale (POS) financing into their merchant offerings. Learn why POS financing is upending the traditional consumer purchase financial cycle and fintech at large; how each company operating in or entering the sector can build a strategy tailored to its resources; and what are trending innovations.

This research will be of significant interest to retail banks, fintechs in lending and banking, and merchants, each seeking to expand their profitable lines. The paper is based on extensive data compilation and interviews with leading solution providers; it includes a compilation of POS finance innovators, their strategies and growth trajectories.

Key Points:

  • POS financing has been completely revamped in recent years, with 0% interest installments, instant approvals, and online payment management.
  • The projected $2.5 trillion market size by 2022 infers that POS finance must become a mainstay strategy for many financial institutions.
  • Trends include the creation of a web/app/store omnichannel experience, offerings tailored by country and for non-credit card holders, and responsible debt management focus.
  • Card/payment networks provide a path to reach merchants and consumers without building one's own branded distribution channel.

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