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 99 - Reducing Chargeback Handling Pain - Rick Lynch, Verifi
Episode 98 - Google Pay Deep Dive with Google's Steve Klebe
Episode 97 - Data Breach Prevention, Investigation, and Remediation - Chris Uriarte, AON Cyber Solutions
Episode 96 - Enterprise Risk, No Time to Relax - Tricia Phillips, Kount
Episode 95 - Hiding Data Jewels in the Tokenization Vault - Alex Pezold, CEO, Tokenex
Episode 94 - Digital Identity and Blockchain Tech - Andre Boysen, SecureKey
Episode 93 - Fitting QR Codes into the Card System - Bastien Latge, EMVCo
Episode 92 - Fintech Leaders Talk Payments - Fintech South Atlanta 2019
Episode 91 - Contactless Magic on a Merchant Smartphone - Maxime de Nanclas, Mobeewave
Episode 90 - PSD2 Enables Fintech Competitors - Myles Stephenson, Modulr
Episode 89 - Growing a Fintech Business for Small Business Cross-border Payments by Outgrowing the Blockchain - Marwan Forzley, Veem
Episode 88 - Digital Marketplaces Go Global - Tomas Likar, Hyperwallet
Episode 87 - On Launching an SMB POS Product Line - Gavin Rosenberg, TSYS
Episode 86 - Fraud Management and the E-Tailer - Rafael Lourenco, ClearSale
Episode 85 - It's Hard to Communicate about Chargebacks - Keith Briscoe, Ethoca
Episode 84 - Diving into the Deep Data Pool - Feedzai's Saurabh Bajaj and Nick Stanchenko
Episode 83 - Settlement Systems in Detail - Carol Coye Benson, Glenbrook
Episode 82 - Restaurant Payments Deep Dive - Tim McKenna, Heartland Payment Systems
Episode 81 - Real Time Payment Network Update - Steve Ledford, TCH
Episode 80 - Talking Tokenization - Glenbrook's Russ Jones
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