Barclays US Consumer Bank has reached a partnership with fintech firm Amount for the development of point-of-sale (POS) financing instalment solution.

The US bank is looking to tap the booming buy now, pay later (BNPL) marketplace with its new offering that is set to go live later this year.

This platform will offer merchants the option of POS payments under their own brand whilst boosting sales by driving ‘consumer loyalty and intimacy’.

Barclays US Consumer Bank CEO Denny Nealon said: “Nearly one-third of US consumers have already used a BNPL 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.

“The time is right to enter the US market and give consumers customised, loyalty-driven transparent POS instalment loan programmes at some of the country’s most successful travel, entertainment, retail and affinity institutions.”

Barclays will leverage Amount’s digital financial services platform for its new offering, which covers fraud prevention, verification and account management.

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By GlobalData

The bank said that it partnered with Amount because of its “proven technology, ease and speed of integration” and know-how of digital financial services.

Commenting on the development, Amount CEO Adam Hughes said: “The rise of mobile and online shopping combined with an increase in digital adoption was quickly accelerated by the global pandemic.

“This has created an environment in which POS is the next battleground in consumer financing, wherein banks are well positioned to compete given their stability and cost-of-capital advantages.

“We share a similar consumer-centric approach to execution, and we’re honored that Barclays chose to partner with Amount.”

Earlier this month, Barclays Bank opened its new 95% LTV Mortgage Guarantee Scheme products for applications.

Amount’s Series C equity financing round

Barclays was an investor in Amount’s Series C equity funding round. The round raked in $86m to speed up R&D and M&A strategies on the platform.

The round had the participation of Barclays US Consumer Bank, in partnership with Barclays Principal Investments.

Barclays head of US Principal Investments Kester Keating commented: “We see a fundamental change and acceleration in the way POS technology is being delivered to end consumers, as well as banks and other infrastructure partners.

“Amount is at the forefront of this change, and we’re delighted to support the company with an equity investment.”