Galileo Revolutionizes BNPL Landscape for Banks and FinTechs

Galileo Financial Technologies has unveiled a significant expansion of its buy now, pay later (BNPL) offering, marking a pivotal shift in the financial services sector, according to PYMNTS.

Recently Galileo announced its latest innovation, enabling banks and FinTech firms to provide cardholders with novel post-purchase installment payment choices using their existing debit or credit cards.

David Feuer, Galileo’s chief product officer, emphasized the transformative nature of this development, stating, “This new offering bridges the gap between cards and loans and allows banks and FinTechs to establish and deepen customer relationships with innovative, flexible financing options for both credit and debit customers.”

Feuer highlighted the ethos of responsible lending embedded within the expansion, noting, “By expanding pay over time opportunities, post-purchase financing is ushering in a new era of responsible lending.”

Unlike conventional credit card interest structures, Galileo’s post-purchase BNPL model incorporates installment fees, affording consumers the transparency of understanding the total cost associated with each purchase prior to finalizing transactions.

Crucially, this expansion not only empowers FinTechs with a foothold in the lending arena but also presents them with avenues for revenue growth through installment fees.

The timing of this expansion aligns with a significant trend observed among consumers, as outlined in the PYMNTS Intelligence/Sezzle report, «Declining Purchasing Power Pushes Consumers to Improve Credit Scores.»

The report underscores the pivotal role of a high credit score in securing credit access and sustaining purchasing power, prompting consumers to adopt strategies such as BNPL to enhance their financial profiles.

Statistics from the report indicate a substantial uptake in BNPL usage for this purpose, with 70% of BNPL shoppers dedicating efforts to augmenting their credit limits over the past two years. Notably, 44% of BNPL users attributed an improvement in credit scores to their utilization of BNPL services.

Furthermore, the report reveals a remarkable disparity in credit score increments, with 29% of BNPL users witnessing a surge of over 100 points in their credit scores over a 24-month period, outpacing the gains observed among average consumers and credit card users.

Galileo’s expansion of its BNPL offering stands as a testament to the evolving landscape of financial services, underscoring the imperative for innovation to meet the dynamic needs of consumers and businesses alike.

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