Continuing our payments in finch series, we talk about one of the major changes in the payments industry over the last few years: the installment lending phenomenon. Companies like AfterPay, Klarna, and Affirm (that just IPO'd and saw its stock double in one day) are leaders in this buy now, pay later (BNPL) space and appeal to Millenial and Gen Z users as well as the merchants selling to them.
These firms offer a range of installment payment options: three, six, and 12 month payback periods are typical. The interest rate gets lower the shorter the payback period and, for the shortest period, that cost is eliminated. The merchant pays for it as promotional financing. These installment loan options generally increase the size of the sale and, because the BNPL provider may take on the risk and guarantee the sale, they remove a measure of risk from the merchant. In other words, for multiple merchant categories, they increase sales.
BNPL providers accept multiple methods of payment: credit and debit cards and, of course, they may encourage the use of ACH as a low cost funding source.
For younger demographics, a majority of them without credit cards and credit histories, these services enable them to transact.
Sezzle is a player in this arena with a unique, very short term product that charges no interest to the consumer because the purchase is paid back in six weeks. The costs are born by its merchant customers. Sezzle has particular appeal to sub-prime or young consumers who may not even have a credit score.
Take a listen as Sezzle’s Chris Bixby, VP of Growth, and Glenbrook’s George Peabody dissect the Sezzle proposition and discuss the changing face of Retail in the post-COVID era.
Watch Chris describe why his customers choose the Sezzle payment option:
Episode 179 - Understanding US Payment Regulation with Jennifer Aguilar, Alston & Bird LLP
Episode 178 - Tokenization
Episode 177 - Fanning the Flames: Durbin-Marshall Credit Card Competition Act
Episode 176 - Fanning the Flames: PaymentsEd Forum 2022
Episode 175 - Delegated Push Payments, Russ Jones
Episode 174 - Fanning The Flames: Proof Of Work Consensus Algorithm
Episode 173 - Fanning the Flames: NFTs
Episode 172 - Fanning the Flames: Fast Payments on the African Continent
Episode 171 - How Wallets Are Transforming The Global Payments Landscape And What Merchants Should Do About It - Chuck Huang, Citcon
Episode 170 - No turning back at the crossroads of embedded finance and the metaverse - Ahon Sarkar, Helix by Q2
Episode 169 - Catching Up On The State Of Payments - Robin Gandhi, Nium
Episode 168 - Fanning the Flames: NACHA Smarter Faster Payments 2022 - Elizabeth McQuerry & Cici Northup
Episode 167 - Combating Fraud - Patrick Chen, SpecTrust
Episode 166 - Payments Trends & Best Practices - Casey Klyszeiko, Fiserv
Episode 165 - Fanning the Flames: Global Payments - Elizabeth McQuerry & Joanna Wisniecka
Episode 164 - 5th Annual RTP Network Update
Episode 163 - Payments Infrastructure and Foreign Policy
Episode 162 - Stablecoins, Cross-border Payments & Interoperability - Ran Goldi, First Digital Assets Group
Episode 161 - AI-ML and Bias - Ismini Psychoula, OneSpan
Episode 160 - Innovation in Payments Workshop - Russ Jones, Glenbrook Partners
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
U.S Property Podcast
Aligned Money Show
Gorse Culture PODcast : The H.R. Detective Agency!
The Ramsey Show
Planet Money