Galileo Financial Technologies, LLC, one of the leading financial technology companies owned and operated independently by SoFi Technologies, Inc., has announced the launch of a buy now, pay later (BNPL) solution that includes the issuance of single-use virtual cards as well as full loan servicing. The adaptable Galileo Buy Now, Pay Later solution will be available to banks and fintechs, giving them quick access to the lucrative BNPL market and giving their customers more purchasing power.
By 2027, the BNPL market is expected to have more than 900 million users worldwide and provide flexible payment options. However, non-bank BNPL providers offer the service using scant customer information, which increases the risk for both the provider and the customer.
David Feuer, Chief Product Officer at Galileo, said, “As more Americans are looking for flexible financing solutions, Galileo created a better BNPL experience that allows banks and fintechs to make more valuable loan offers to their customers directly from their existing bank systems. For our clients who are already part of the Galileo ecosystem with checking and savings accounts, offering Buy Now, Pay Later makes it even more seamless for program managers to execute both payments and disbursements.”
The bank-issued Buy Now, Pay Later solution makes repayment flexibility available to more consumers in more places. Unlike non-bank BNPL providers, underwriting decisions are made by the bank or FinTech, who have insight and understand the customer’s financial history best. The total number of installments can be customized. Galileo then manages and services the loan, which includes overseeing the repayment schedule, disbursement to the virtual cards, assessment of interest and fees, payment processing, charge off, and optional credit reporting.
Clients and banks that offer Buy Now, Pay Later to their customers will be offered financing through their bank or a sponsoring bank partner under Galileo, considering the customers’ financial situation and capacity for repayment. A real-time personalized offer is displayed on the bank’s or FinTech’s mobile application. The majority of retailers will present a prefunded, one-time use virtual card in-store or online if the customer accepts the loan offer.