Point of Sale (POS) financing was traditionally considered to be a revolving line of credit, either in the form of private label store cards or general credit cards. The POS financing model is increasingly being seen as one of installment loans, and top tier banks and lenders are looking to offer this option. Here is a recap of the major benefits:

There are currently three options for a lender entering the POS lending space:

  1. Branded installment loan program: By producing your own branded installment loan program, available at the point of sale. The most successful example of this is Citizens who are the exclusive finance partner for iPhones bought directly from Apple. With more than half of all iPhone buyers opting for financing plans, Citizen’s Apple portfolio has grown from zero in 2015 to approx. $1 billion in 2018. While there is a lot of potential in this approach, it requires major integration with the merchant’s point of sale.
  2. Partner with a payment issuer: For example, Visa who are offering a new installment loan facility on existing cards on their Visa Next platform. This will also require each merchant to undergo a process of integrating into the bank’s program.
  3. Installment loan facilitator: Collaborate with a specialty fintech operation who will act as an installment loan facilitator. This way, you are focusing on your biggest strengths which are merchant and borrower risk underwriting, offering an exceptional loan program, but without the need to input heavy resources into merchant integration. For more information, click here to read how Jifiti does this.

Partnering with an installment loan facilitator such as Jifiti allows us to scale your loan business and design the platform features according to the merchant’s brief. This will give you as the lender, the ability to focus on creating a complete POS loan program, presenting the following important features to help you attract merchants: 



Need more assistance? Let us know how we can help. Feel free to reach out to our General Manager of Consumer Financing directly at nufar@jifiti.com.


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