FuturePay Offers Revolving Credit to Online Merchants

FuturePay, an eCommerce financing company, has made its MyTab revolving credit platform available for online merchants.

“The MyTab solution is an alternative to traditional credit card and Buy Now Pay Later (BNPL) installment loan offerings,” FuturePay said in a news release Monday (Aug. 22).

The solution operates independently from credit card networks and can be integrated with various eCommerce platform shopping carts through a simple “plug and play” application programming interface (API). It lets consumers apply one time and — on approval — reuse their credit lines indefinitely.

Read more: FuturePay Partners With Cross River for Credit Platform

“This has major advantages over ‘apply once/use once’ BNPL installment loans when it comes to improving customer lifetime value,” the company said in the release.

FuturePay said the reusable credit line raises brand loyalty and delivers merchants recurring revenue through repeat and subscription-based purchases, whereas BNPL loans end the merchant/customer relationship once the installment payments conclude.

“MyTab’s cardless digital revolving credit platform combines the best of all worlds: instant decisioning, an embedded payment solution, and the convenience of BNPL with the flexibility and proven business model of traditional credit cards,” said FuturePay CEO Tim Harris.

FuturePay gained access to MyTab in June following an agreement with tech infrastructure provider Cross River. Beyond the selling points Harris mentioned, the company has said MyTab also offers rigorous credit screening and fraud mitigation, similar to how traditional credit cards and store card companies operate.

PYMNTS recently took a look at a rising trend in the BNPL world: The idea of BNPL businesses providing their solutions directly to consumers instead of retailers, a concept some are calling BNPL 2.0.

See also: BNPL’s Newest Trick: Cutting Out the Retail ‘Middleman’

“If you look at [recognizable] BNPL [1.0] or point-of-sale finance buttons, these checkout buttons, they engage directly with retailers,” said Philip Belamant, CEO and co-founder at Zilch. “Their customers are primarily retailers.

“Our goal [at Zilch] is to bring … an embedded finance solution to a customer and let that customer carry this around and pay however they like, wherever they like, for whatever they like wherever they go, regardless of what the retailer has done.”