Lending & Payments
Consumers love credit as a payment method. So do merchants. But selection of the right source is critical to increasing sales.
Overview of Lending & Payments
Lending & payments is a longstanding dynamic space.
The Buy Now, Pay Later (BNPL) approach to purchases and payments has just about affected every price point for a purchase from pharmacies and restaurants to major home purchases from appliances to furniture and much more. It can boost average basket size by 18% but it’s a fragmented market and regulatory change is likely.
Card networks are building installment payment options of their own, appealing to an enormous cardholder base. PayPal continues to tune its credit offering.
Modern underwriting is a new ballgame. Rich data sources, machine learning, and consumer privacy concerns must be balanced. For business lending, this month’s cash flow report has replaced last year’s audited income statement as key data source for underwriting
Customer credit preferences vary by biller and merchant type, retail category, and price point.
What does this mean for you?
We apply decades of experience in lending & payments to help you.
What does the ecosystem look like for lending & payments? What are the benefits and risks to this payment method?
Lending as a payment option is evergreen. However, the landscape of players and approaches is changing rapidly. The GlenbrookTM team applies deep subject matter expertise and rigorous consulting methodologies to help you plan for the future.
Example engagements include
- We assisted several commerce platforms serving small and medium sized businesses (SMBs) with developing credit products/finance offerings to their customers
- We conducted an industry scan for a large credit union to contextualize BNPL and elevate related opportunities and risks.
- We advised a major institutional investor on the threat BNPL poses to traditional lenders and credit card networks.
Payments Boot CampTM workshops
Curious about the transaction flow behind BNPL and the parties involved? Wondering about the market dynamics, sizing and opportunities and our perspective on this solution? Have the GlenbrookTM education team ground you and your team in the complexities of the lending and payments landscape.
A large energy company wanted to craft a payments strategy that would digitally engage cash customers. Glenbrook was asked to help them develop a comprehensive payments strategy that included a credit offering.
Launch, improve & grow your payments business