Galileo has expanded its BNPL software to permit banks and fintechs to supply cardholders post-purchase installment fee choices.
The brand new characteristic works with corporations’ current debit and credit score applications and permits shoppers to pick out as much as 5 historic transactions to maneuver right into a BNPL fee plan.
Galileo’s new providing is much like U.Ok.-based Curve’s Flex characteristic that permits clients to maneuver transactions right into a installment compensation plans.
Fee processing platform Galileo introduced it’s increasing its Purchase Now, Pay Later (BNPL) providing. The SoFi-owned firm launched an API for its financial institution and fintech purchasers that may allow them to supply their cardholders post-purchase installment fee choices.
The post-purchase compensation choices, which work with corporations’ current debit and credit score applications, permit shoppers to pick out as much as 5 historic transactions to maneuver right into a BNPL fee plan. As soon as the client has chosen the acquisition or purchases they wish to transfer to a BNPL plan, the financial institution or fintech presents them a proposal, together with the phrases of settlement. If the client accepts the phrases, Galileo validates that the transactions are settled and never tied to any current installment loans, and creates the mortgage for the overall transactions.
The post-purchase BNPL plans work in another way for purchases made with a debit card than they do with a bank card. For transactions made with a debit card, the financial institution or fintech disburses the funds to the client’s Galileo DDA or an exterior account. And with credit score transactions, the payoff quantity is shifted to the client’s bank card fee due date within the agreed upon installments.
“This new providing bridges the hole between playing cards and loans and permits banks and fintechs to determine and deepen buyer relationships with revolutionary, versatile financing choices for each credit score and debit clients,” mentioned Galileo Chief Product Officer David Feuer. “By increasing pay over time alternatives, post-purchase financing is ushering in a brand new period of accountable lending.”
Galileo expects the brand new providing will assist banks and fintechs differentiate themselves in a crowded market, drive income via installment charges, and function a leaping off level for corporations to enter into the lending house.
This isn’t the primary time the fintech world has seen post-purchase BNPL. Curve, a U.Ok.-based fintech, affords a direct-to-consumer bank card with a characteristic known as Flex that permits clients to pick out transactions they’ve made previously yr and transfer them into an installment compensation plan. Curve launched its bank card within the U.S. in 2022, however has since paused new accounts within the area.
Galileo was based in 2001 as a fee processing platform that permits third occasion fintechs and companies to construct and scale their very own monetary companies choices. The corporate was acquired by SoFi in 2020 in a $1.2 billion deal. Earlier this month, Galileo inked a partnership with The Bancorp Financial institution to supply real-time funds.
Photograph by Kindel Media
