Barclays Partners With Amount For Point-Of-Sale BNPL Solution

Barclays will become one of the first major banks in America to offer point-of-sale financing options through a new partnership with digital banking platform Amount.

The company said in a news release Tuesday (April 27) that it will also serve as one of the first providers giving merchants the option of making point-of-sale (POS) payments under the merchant’s brand, giving them a chance to strengthen their bond with customers.

According to Barclays, the rise in eCommerce and increased consumer demand for multiple payment options has fueled a 200 percent growth in buy now, pay later (BNPL), something the bank says it is well-positioned to address.

“Nearly one-third of U.S. consumers have already used a buy now, pay later service, and the demand is expected to continue to grow as consumers become more comfortable with the transparency and ease of use of flexible payment options,” said Denny Nealon, CEO of Barclays US Consumer Bank.

“The time is right to enter the U.S. market and give consumers customized, loyalty-driven transparent POS installment loan programs at some of the country’s most successful travel, entertainment, retail and affinity institutions.”

Barclays said the new platform, expected to go live later this year, will be powered through Amount’s digital POS financing platform, with features that include fraud prevention and account management. Barclays says it chose Amount due to the company’s “proven technology … and deep knowledge of digital financial services.”

The announcement comes during a time of high customer enthusiasm for BNPL among consumers looking for more financial security. As reported in this space last year, many installment payment providers saw increases in customer adoption and larger shares of repeat customers.

For example, BNPL provider Afterpay reported $1 billion in U.S. and 4.4 million customers during the third quarter of the 2020 fiscal year, a 238 percent jump from the previous year.

For more on this phenomenon, read our Deep Dive into BNPL from last year.