Barclays US Consumer Bank will offer its merchant partners the ability to provide point-of-sale (POS) installment payment options later this year, making the London-based bank’s North American branch the latest financial institution to participate in the program. ‘immediate purchase. later (BNPL).
“Customers want products to buy now, pay for later. Our partners want them too. We see this as an extension of our business model, ”said Denny Nealon, CEO of Barclays US.
Barclays US is launching the service in partnership with technology provider Amount, which helps financial institutions integrate point-of-sale financing interfaces into their existing systems.
“We bring a lot to the table in terms of stability, relationships, underwriting and credit servicing, and in Amount we have found a partner who can really help accelerate our path to their technology platform,” said Nealon.
The bank had BNPL services on its product roadmap for some time and had initially planned to develop the product in-house, Nealon said.
“We looked at what we’re really good at and what it would cost us to be able to do it and do it well,” he said. “And then getting to know the team at Amount was a pretty easy decision.”
Amount, which is from Before online lender in January 2020, four banks are using or are expected to use its BNPL product, said CEO Adam Hughes.
TD Bank, another partner of Amount, uses the services of fintech to offer buyers a payment option in installments when making online purchases of products through NordicTrack, a merchant partner of the bank.
Through the partnership with Amount, Barclays said its merchant partners would be able to offer customers point-of-sale payment under the merchant’s own brand.
“Our whole model is based on the success of traders. We feel that by bringing this expertise, with our track record, our capital cost advantages and our service model, coupled with … this world-class platform created by Amount, it gives us a huge first-come strategic advantage that I think others haven’t yet, ”Nealon said. “We plan to use it to boost our growth and give our partners and customers more options to purchase products.”
Barclays and Amount have declined to share financial details of the partnership, but the majority of Amount’s income will come from transactions, as it takes a percentage of all loans Barclays processes through its services, Hughes said.
“As we expand this partnership, Barclays will be really excited to create new assets, merchants can be very happy to have unlocked this additional payment option, the customer has a choice and then has unlocked opportunities to additional income for our business, ”he said. “I am delighted to see banks, especially Barclays, really starting to lean into this category to offer these products that are clearly resonating with consumers.”
Consumer adoption of BNPL has taken off amid the pandemic, with payment volumes increasing by more than 50% among the top four companies in the space in the first nine months of 2020, according to the Wall Street Journal, which cited data from Autonomous Research.
BNPL trend is expected to grow. Consumers will spend an estimated $ 680 billion globally using point-of-sale installment payments on e-commerce channels by 2025, fintech research firm Kaleido Intelligence found in September.