Enables Banks to Join the Growing “Buy Now Pay Later” Market
Global payment innovation company Verrency announced the launch of a new product feature “Pay Later” on its payment innovation API platform for banks and card issuing processors.
Installment payment (or “Buy Now Pay Later”) solutions are the fastest-growing digital payment method in the United States, Brazil, Colombia, Australia, the United Kingdom and other mature payments markets, with market share projected to grow at a rate of 28 percent over the next five years, according to PYMNTS.com.
Verrency’s “Pay Later” feature enables bank customers to instantly move any regular purchase transaction to a longer-term installment payments plan. Consumers can select to pay in multiple installments with a single click before, during, or after a purchase is made. Customers can use their bank’s existing debit or credit card to purchase items as they normally would, and can then move purchases to installments, paying off their purchases over a longer period of time.
Verrency’s “Pay Later” feature enables the bank to direct their customer to their bank’s own installment account or to work with third party lending providers who can perform the servicing and/or underwriting – depending upon the bank’s preferences.
In the current economic environment, financing options for everyday purchases go a long way in reducing financial burdens and help consumers preserve cash. Until now, installment payment solutions have been limited to third parties (‘Buy Now Pay Later” providers) that offer installment payments via a limited list of enabled merchants. These solutions have typically required a consumer to set up a new account with the ‘Buy Now Pay Later’ provider and are generally limited to the merchants that accept that particular payment method.