Money

Coronavirus Will Slow But Not Stop Billion-Dollar Point-of-Sale (POS) Financing Boom


ROCKVILLE, MD, April 20, 2020 / PRNewswire / – U.S. consumers have relied for decades on a combination of credit cards, home equity lines of credit, and personal loans to purchase large tickets, with the credit card particularly established as the preferred payment product over time .

But as stated in the latest Packaged Facts study, Point-of-Sale Installment Loans: The U.S. Market and International Perspectives, Including COVID-19 Market Impact Assessment, fintechs have developed innovative and highly successful point-of-sale (POS) installment loan products, initially but more exclusively for e-commerce, shedding familiar payment forms and processes.

By orienting their solutions towards structural sticking points in the payments industry, these fintech companies are imagining new processes (and not just improving old ones) that create greater convenience and value for consumers – and offer enough value to traders to more than make up for the high percentage. sales that fintechs charge them.

Installment loans in the United States will therefore pass $ 391 billion in 2015 to a project $ 972 billion in 2020, according to Packaged Facts, for a compound annual growth rate of nearly 20%.

By next year, however, aftershocks from the current coronavirus pandemic will be fully felt. Report author Elizabeth rowe therefore sees the market face a major setback in 2021, as the corrosive effects of a global recession, if not a depression, set in, as well as the tactical responses of fintech players to the changing landscape economic and consumer credit.

Many companies in the sector are fueled by private equity interests that may or may not be willing to support the petri-dish experimentation of credit strategies that has characterized this new consumer credit industry. “None of these companies have gone through an economic crisis,” Rowe explains, “and although this segment of the industry benefited from the aftermath of the Great Recession, their own business models were not subjected to a major crisis. “.

Even so, the report argues that consumers of prime and super prime credit will tend to revert to that credit status, despite the significant personal finance setbacks that will result from the COVID-19 economic crisis. This means that the prime + debt they hold today may take a while – maybe even a long time – to be paid off, but this gain will indeed occur.

Packaged Facts therefore projects the US point-of-sale financing industry to return to aggressive double-digit growth, approaching $ 2 trillion in revenue by 2025.

About the report

Consumer credit is a multi-trillion dollar industry in the United States, with point-of-sale installment financing (also known as “buy now, pay later”) included under the category of “personal loans” for the consumer. presentation of financial results. This report separates point-of-sale installment loans from their parent category, providing estimates of the size of the US market for 2015 versus 2020, as well as year-by-year projections through 2025. These projections are expressed in terms of the expected impact on the economy and credit policy of an economic contraction triggered by a coronavirus pandemic.

While focusing on the US Point of Sale Installment Loans industry, this report also covers the broader context of point of sale finance in countries in Asia, Europe and Latin America. Point-of-Sale Installment Loans: The U.S. Market and International Perspectives, Including COVID-19 Market Impact Assessment, examines current consumer borrowing behaviors; strategic positioning initiatives of financial technology companies (fintechs), banks, card issuers and card networks; and the cross-border deployment of these initiatives across all product categories and trading platforms. The report also analyzes each of the major business models in the industry, examining the potential viability of each model as more players join in and bring their own marketing messages, business partnerships, revenue models, and targeted consumer cohorts. . It provides a comprehensive industry background for POS installment loans, an assessment of the strategies and success of existing and new participants in the industry, and a detailed analysis of the opportunities and challenges for those entering or competing in this industry. fintech.

Media members, please contact our communications manager Daniel granderson at [email protected] for a copy of the summary report. Those interested in purchasing the report can contact the research specialist Frank Gaines at [email protected] or visit https://www.packagedfacts.com/Point-Sale-Installment-Loans-International-Perspectives-COVID-Impact-Assessment-13182939/.

About the packed facts

Packaged Facts, a division of MarketResearch.com, publishes market information on a wide range of topics related to the consumer market, including consumer demographics and information on buyers, consumer financial products and services, consumer and retail goods, and pet products and services. Packaged Facts also offers a full range of personalized research services. Reports can be purchased from our company website and are also available on MarketResearch.com.

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Media contact: [email protected]

SOURCE Packaged Facts

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