Global payment innovation company Verrency today announced the launch of a new product feature "Pay Later" on its payment innovation API platform for banks and card issuing processors.
Installment payment (or "Buy Now Pay Later") solutions are the fastest-growing digital payment method in the United States, Brazil, Colombia, Australia, the United Kingdom and other mature payments markets, with market share projected to grow at a rate of 28 percent over the next five years, according to PYMNTS.com.
Verrency's "Pay Later" feature enables bank customers to instantly move any regular purchase transaction to a longer-term installment payments plan. Consumers can select to pay in multiple installments with a single click before, during, or after a purchase is made. Customers can use their bank's existing debit or credit card to purchase items as they normally would, and can then move purchases to installments, paying off their purchases over a longer period of time.
Verrency's "Pay Later" feature enables the bank to direct their customer to their bank's own installment account or to work with third party lending providers who can perform the servicing and/or underwriting - depending upon the bank's preferences.
In the current economic environment, financing options for everyday purchases go a long way in reducing financial burdens and help consumers preserve cash. Until now, installment payment solutions have been limited to third parties ('Buy Now Pay Later" providers) that offer installment payments via a limited list of enabled merchants. These solutions have typically required a consumer to set up a new account with the 'Buy Now Pay Later' provider and are generally limited to the merchants that accept that particular payment method.
Verrency's "Pay Later" product will significantly accelerate the 'Buy Now Pay Later' adoption curve by:
1) Enabling issuing banks to lead the way with their own "Pay Later" solution simply linked to their customer's existing secure accounts, and
2) Enabling "Pay Later" installment payments for all transactions at any merchant worldwide.
"Verrency has cracked the code - for banks, they have eliminated the need to build a platform and the cumbersome merchant onboarding; for consumers they are offering the ultimate flexibility to choose when and how they want to make payment… even for a previous transaction. And importantly, they enable banks to more easily launch 'Buy Now Pay Later' for their own customers," says Daniel Chatelain, founder and head of the BayPay Forum, a long-time Silicon Valley-based global industry body focused on innovation in payments.
Banks have been slow to develop such solutions internally in part due to the high cost of modifying existing legacy payment systems, leaving the market wide open for upstarts who see the popularity of installment payments exploding with all age groups, but particularly among the younger generation who seem to prefer a known fixed payment and term.
Verrency now gives banks the ability to rapidly turn on a "Pay Later" solution - not only in response to increased competition - but more importantly in a time of austerity when the financial flexibility is desperately needed by consumers. This gives issuing banks and payment processors a real and meaningful opportunity to help their customers when they need it most.