Post-Purchase Financing Ushers In a New Era of Lending

The cart doesn’t lead the horse, which is why payments innovations tend to check the boxes that end users need most. And sometimes the smallest boxes, or micro moments, can have the biggest impact.

“Embedded finance solutions need to be embedded in the consumer’s flow in order to capture those micro moments when a consumer wants them,” David Feuer, chief product officer at Galileo, said to PYMNTS.

“Post-purchase buy now, pay later (BNPL) services are great, because you’ve captured the micro moment where they are looking at their charge and asking themselves, ‘Do I want to pay this out of my bank account, or do I want to pay for it differently?’” he added.

After all, the surging demand for BNPL services globally, with projections indicating a user base surpassing 900 million globally by 2027, underscores a shift in consumer behavior and preferences. Banks and FinTechs need to be offering it to stay relevant, particularly in an increasingly competitive landscape where traditional financial value propositions are becoming more commodified.

And post-purchase BNPL solutions, when compared to traditional BNPL services, aim to bridge the gap between traditional card usage and alternative financing options.

“We see a ton of BNPL in general, but we don’t see a lot of post-purchase BNPL. There’s this really great opportunity for banks and FinTechs that are looking to differentiate to capture that micro moment and deliver that to their customers,” Feuer said.

He added that amid today’s shifting economic conditions, there also exists a growing imperative for financial institutions to capture additional revenue streams — and the incorporation of installment fees through BNPL presents an attractive, new avenue for revenue generation.

Read more: Galileo Expands BNPL Offering for Banks and FinTechs

Transitioning Between Card Usage and Financing

The payments world today looks much different than it did even five years ago, and so do the expectations of consumers.

“There’s this new expectation that customers have around highly customized services. … In financial services, there’s been this competitive push to bring that level of personalization to meet consumer expectations,” Feuer said.

Crucially, he explained, there’s been a shift around financial behaviors, with consumers becoming “cognizant about their purchases and trying to find a transparent structure around budgeting and purchasing.”

Against that backdrop, providing clear insights into costs, terms and overall financial impact fosters transparency, and can empower consumers to make more informed decisions about their financial health and goals.

“There is a change in spending habits, particularly in the post-pandemic world. Gen Z, for instance, does not want a credit card because they can’t predict when they’ll be able to pay back what on their credit card,” Feuer said, noting that the transparency around a BNPL fee is much clearer than it would be around something like a credit card’s compound interest structure.

And it isn’t just Gen Zers who want more clarity and predictability around their spending.

“A lot of consumers want to connect with their money, and a lot of that is about transparency. … They don’t want to feel that if there is an impulse buy, or if they make a mistake, there’s a punitive fee because they didn’t have that clarity,” Feuer added.

Deepening Customer Relationships

Still, when it comes to embracing innovation, Feuer noted three main hurdles that, while not impossible to overcome, are worth keeping an eye on.

The first is that many banks are dealing with quite a lot of technological inertia. For them to be able to adopt innovative products and roll them out at the pace at which innovation moves, strategic investments in modernization and API integration will be needed to overcome the limitations of existing legacy systems.

Second, regulatory changes can impact lending practices, necessitating proactive engagement and compliance measures. Striking a balance between innovation and regulatory requirements is imperative for sustained growth.

And finally, he highlighted that fluctuating economic conditions themselves can impact consumer spending patterns and lending viability.

Looking ahead, Feuer envisioned a future where BNPL extends beyond just unsecured term loans, seamlessly integrating into consumers’ digital journeys.

“When we look at the landscape of banking and financial services, shopping for homes and mortgages and vacations, there are all of these other areas where loans, and particularly secured loans, are ripe for innovation and disruption. … A lot of embedded finance has been focused on CPG (consumer packaged goods), and I think what does evolve is how and where embedded appears in the consumer’s flow, with better ability to capture those micro moments when a consumer might want liquidity at that moment,” he said.


Binance Tops PYMNTS’ Provider Rankings of US Cryptocurrency Apps

Cryptocurrency apps in the U.S. have surged in popularity due to factors such as the potential for profit, low transaction fees, and increasing user accessibility. These platforms allow users to trade cryptocurrencies easily, offering a decentralized, peer-to-peer model that reduces reliance on traditional financial institutions.

The ability to buy low and sell high has attracted investors seeking financial gains, while lower fees compared to traditional payment methods make these apps more appealing for online transactions. The increased acceptance of cryptocurrencies by businesses, along with advancements in blockchain technology, security, ease of use, and high liquidity, is fueling the belief that crypto could shape the future of finance.

PYMNTS’ Provider Rankings of Cryptocurrency Apps evaluate the performance of leading platforms based on factors such as user experience, transaction volume, security features and customer service. By analyzing consumer preferences and industry trends, these rankings provide insights into which apps are best meeting the needs of cryptocurrency users, and highlighting the platforms that offer the most reliable, user-friendly and innovative services.

The Top 5

No. 1 is Binance with 98 points.

Founded in 2017, Binance offers a range of services for new and experienced investors. The platform supports over 350 cryptocurrencies, including popular options like bitcoin and ethereum, along with niche altcoins. This variety, combined with high liquidity, ensures users can quickly execute transactions with minimal price slippage.

A key feature of Binance is its competitive fee structure, which includes discounts for paying with Binance Coin (BNB), making it attractive for frequent traders. The platform also provides advanced trading tools, such as charting and real-time data, and offers margin and futures trading. Its user-friendly interface, including a mobile app, makes it accessible to traders of all experience levels.

Security is a top priority for Binance, with multi-signature wallets, two-factor authentication (2FA), and a Secure Asset Fund for Users (SAFU) protecting funds and personal information. Binance also offers staking, lending and savings options for passive income, appealing to long-term investors.

No. 2 is Bybit with 91 points.

Bybit is accessible in over 180 countries and offers an intuitive mobile app that provides most of the desktop version’s features, making it convenient for users to manage their crypto investments anywhere. With access to more than 1,200 cryptocurrencies, Bybit allows users to buy, sell, and trade with ease, while offering up to 100x leverage for experienced traders looking to maximize potential profits.

Additionally, Bybit offers Bybit Earn, a feature that allows users to earn interest on their cryptocurrency holdings. This range of services and tools caters to beginner and experienced traders, making it a popular choice in the crypto space.

Tied for second with 91 points is Crypto.com.

Based in Singapore, Crypto.com offers a wide range of services including an app, exchange, DeFi wallet, and NFT marketplace, providing access to over 350 cryptocurrencies. The Crypto.com app allows users to buy, sell and track cryptocurrencies with more than 20 fiat currencies, offering features like price alerts, recurring buys, and TWAP bots to optimize trading. Users can also earn interest on their holdings, spend crypto through the Crypto.com Visa Card, and receive up to 5% cash back on purchases.

For more advanced traders, Crypto.com’s exchange supports over 200 cryptocurrencies, with spot, margin and derivatives trading options. It offers low fees and discounts for those who stake its native token, CRO. The platform also includes automated trading bots and emphasizes security with 2FA.

KuCoin and Coinbase round out the top five with 83 and 76 points, respectively.

Nos. 6-10

Checking in tied at No. 6 with 74 points is HTX and OKX.

Nos. 8-10 comprise MEXC, Blockchain.com, and BTCC with 65, 62, and 54 points, respectively.