Amount, a leading technology provider for financial institutions, and global modern card issuing platform Marqeta (NASDAQ: MQ) announced today the first virtual card and loan origination partnership to help banks rapidly enter the buy now, pay later (BNPL) space.
The partnership alleviates the digital tools gap that prevents many banks from entering the BNPL space, allowing them to go to market in months with a BNPL offering and virtual card that drives revenue, captures market share and increases loyalty online and in-stores.
Money spent through the BNPL market is expected to nearly quadruple — a 274% increase — between 2021 and 2026. This leaves a significant volume of untapped revenue on the table for banks that lack the digital tools to capture market share as banking customer acquisition and relationships increasingly shift to new channels such as ecommerce and social media. At the same time, nearly half of consumers who have used BNPL would prefer the service from their bank or credit card provider, signaling a widespread opportunity for banks. Amount’s proven and configurable omni-channel BNPL solution and Marqeta’s instant virtual card issuance are fully integrated and seamless, giving banks speed to market and the flexibility to expand across channels and payment vehicles to meet shifting consumer and merchant needs.
“With escalating consumer expectations for simple, digital experiences at every step, banks must compete or continue to lose market share to digital challengers who offer a more flexible way for their customers to pay,” said Adam Hughes, CEO of Amount. “We continue to develop and expand our platform to give banks the agility and tools they need to create high-value interactions at the point-of-sale. As a leader in modern payments and innovation, Marqeta shares our vision and is the ideal partner to bring best-in-class solutions to banks.”
By extension, banks that can offer merchants intuitive and simple BNPL and virtual card solutions also provide a proven revenue stream that sparks consumer purchase behavior. Data shows that while roughly 70 percent of e-commerce shopping carts are abandoned, options such as BNPL not only narrow that gap but also increase average order value. Further adding to the BNPL boom, research shows that 60 percent of consumers say they are likely to use POS financing over the next six to 12 months.
Amount has deep experience working with the complexities of big banks and its platform is the market’s first and only battle-tested enterprise solution built specifically to help banks compete in the BNPL space. Its modular approach to BNPL is configurable, easy to deploy and seamlessly integrates with legacy platforms, giving banks the flexibility to roll out BNPL with split play or installment payments across a variety of channels, payment vehicles and integration methods.
“This partnership creates a pathway for banks to become more agile and meet customer demand for more flexible ways to pay, including BNPL,” said Darren Mowry, Chief Revenue Officer at Marqeta. “We’re proud to partner with Amount and bring our scalable, modern platform to a new set of banks that are taking advantage of digital tools to expand their offerings and help them compete in today’s rapidly-evolving payments landscape.”