Buy Now, Pay Later (BNPL) is a type of short-term financing that allows consumers to make purchases and pay for them at a future date, often interest-free. The Buy Now, Pay Later solution is a digital journey that allows customers to obtain a loan for consumer needs. The form driven flow helps the customer buy something they need/ want. The application process is tied to the checkout solution for the marketplace so that the experience is seamless and very fast compared to a more classic loan offering. You can apply for it online to pay for a product you wish to purchase. All the steps of acquiring the loan are digital and in real-time, including inserting the card details to pay for the product.

The solution does not include a payment processing mechanism. it is subject to internal implementation.

The solution is also built to handle multiple types of scoring mechanisms, from a fully integrated user score based on the marketplace behavior to a more classical approach with Credit Bureau checks and Open Banking capabilities. The solution employs an Open Banking method for markets where financial institutions must perform income checks.

However, the journey can be modified as per the business requirements using our low-code Innovation Studio. The solution determines if customers are eligible for a solution before applying. The user can be both an un-authenticated customer, i.e., a new customer to the bank or an existing customer. The customer segment is retail.

The journey is accessible through APIs, therefore the accelerator integrates with any marketplace for a seamless experience, for example, e-commerce websites for electronic goods or clothing websites.

The solution is both mobile-friendly and desktop appropriate.

Business Pain Points

The Buy Now, Pay Later digital journey by FintechOS is aimed at resolving some of the pain points when applying for a loan:

  • the most common alternative, the credit card, usually needs the customer to already have a credit card, which entails they need to first apply for the credit card, then buy the product
  • alternative options for this type of financing are usually expensive
  • lack of payment options
  • lack of integration with the e-commerce websites
  • filling in multiple fields with personal details.

Advantages of Buy Now, Pay Later

Here are some of the major benefits the solution offers through FintechOS:

  • Instant loan origination. You do not need to take any action as the origination is embedded into the buying process.
  • Improved Experience. You are aided financially when buying a product.
  • Time-efficient. The solution is quick to determine whether you are eligible for the Buy Now, Pay Later financial offering without having to go through an extensive application review process.
  • Variety of banking products to apply for. You can choose to pay for your products in 12 instalments.
  • Integrations. APIs calling endpoints to trigger integration with a core banking system and e-commerce websites.
  • Self-service. You do not need to come in contact with a bank employee.