Galileo Financial Technologies is expanding its Buy Now, Pay Later (BNPL) offer.
The mentioned firm will now allow banks and financial companies to offer cardholders new payment options in installments after making purchases using their existing debit or credit cards. The relevant information is contained in the Galileo press release.
David Feuer, the company’s chief product officer, said that the expansion of BNPL’s offering bridges the gap between cards and loans and allows banks and other financial sector players to establish and deepen customer relationships. In this case, innovative and flexible financing options are provided for credit and debit clients. According to David Feuer, the expansion of the ability to make payments over time ushers a new era of responsible lending.
Galileo’s press release notes that BNPL provides fintech companies with an entry point into the lending sector. At the same time, in this case, firms of the mentioned categories get the opportunity to increase their income through installment fees. In the press release, special attention is drawn to the fact that BNPL, unlike traditional credit card interest, allows consumers to see the total cost associated with each purchase before making it.
David Feuer stated that Galileo’s offer is available to all merchants who accept credit and debit cards.
Currently, consumers are using BNPL solutions to increase their purchasing power. A decrease in purchasing power is often a kind of incentive to improve credit scores. The mentioned ratings are the main factor determining consumers’ access to loans.
BNPL has already become a kind of financial improvement tool for many consumers. In the United States, 70% of users of this service have increased their credit scores in the previous two years. It is also known that for 27% of BNPL consumers, this solution is interesting primarily as a way to increase the mentioned scores. Over the past two years, 29% of users of the specified solution have recorded that their credit scores have grown by more than 100 points. At the same time, 21% of average consumers and 20% of average credit card users saw similar spikes over the same period.
Large credit card debts can be described as a kind of platform for BNPL demand among consumers of financial services. Moreover, this new-generation solution has become popular, due to the deteriorating economic situation. The mentioned situation has had an impact on consumer activity in the United States. The US Commerce Department has published data according to which retail sales fell by 0.8% year-on-year in January 2024. At that time, the media reported that economists had expected a decrease in the mentioned indicator of 0.6%.
Galileo is based in Sandy, Utah. The company was founded in January 2001. The number of employees of the firm is 1,600 people. The company cooperates with more than 55 organizations. Galileo serves 145 million accounts. The firm positions itself as the platform fintech is built on.
As we have reported earlier, Amazon to Offer BNPL in Mexico.
