US-based Galileo Financial Technologies has launched a new buy-now-pay-later (BNPL) solution for banks and fintech firms.
The new solution is aimed at offering clients easy access to the booming BNPL market, which is estimated to have 900 million users across the globe by 2027, Galileo said.
According to the technology vendor, non-bank BNPL service providers offer credit with limited data about customers’ creditworthiness.
With Galileo’s solution, clients will be offering financing to consumers through their bank or a sponsoring bank partner.
Credit underwiring decisions are made by the bank, which has access to the consumer’s credit history, thereby eliminating the risk of default.
Galileo chief product officer David Feuer 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 BNPL makes it even more seamless for program managers to execute both payments and disbursements.”
Galileo’s solution comes with a single-use virtual card, which is issued once the customer accepts the loan offer.
The loan servicing is done by Galileo, which oversees the repayment plan, the distribution of funds to the virtual cards, the calculation of interest and fees, the processing of payments, charge-offs, and optional credit reporting.