US Point of Sale Installment Loan Industry


Dublin, 01 May 2020 (GLOBE NEWSWIRE) – The “Point-of-Sale Installment Loans: The US Market and International Perspectives, with an Assessment of the Impact of the COVID-19 Market” report was added to ResearchAndMarkets.com offer.

In the United States, for decades, consumers have primarily relied on a mix of credit cards, home equity lines of credit, or personal loans when purchasing important items, with the credit card being particularly important. recognized as the preferred installment payment product. By eliminating familiar payment forms and processes, financial technology (fintech) companies have developed dozens of new point-of-sale (POS) payment financing products. They do not follow a one-size-fits-all approach, but rather orient their solutions towards the various structural friction points in the payments industry. They envision new processes (not just improving old ones) that create more convenience and value for consumers, and that create enough value for merchants to more than make up for the high percentage of sales billed to them by retailers. fintechs.

POS installment financing is gaining ground in the market as it serves the needs of stakeholders in digital and physical retail. It is a showcase for fintechs demonstrating the value created for traders / buyers and the profits generated for their investors thanks to the technology they offer.

Scope of the report

Consumer credit is a multibillion dollar industry in the United States, with installment financing POS (also known as buy it now, pay later) being included in the financial results reporting category of “personal loans” . 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-to-year projections through 2025. These projections are expressed in terms of the anticipated impact on economic and credit policy of an economic contraction triggered by a coronavirus pandemic.

While focusing on the US point-of-sale installment loan 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 Lending: The US Market and International Outlook, with the Market Impact Assessment of COVID-19, 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 product categories and business platforms. It 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, merchant partnerships, revenue models, and consumer cohorts. targeted. 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.

Methodology of the report

The information in this report was obtained from primary and secondary research. The main research included an exclusive online national consumer survey conducted in February-March 2020 to measure POS installment loan utilization rates, frequency of use, loan size, vendors, and demographics of POS installment loans. consumers. With a sample of 2,000 people, this survey relied on national online research panels to aggregate a representative census sample on key demographic measures of age, sex, geographic region, race. / ethnicity and household income.

Secondary research includes general business and trade publications, management consulting reports, investment analyst reports, corporate financial documents, and supplier-generated survey results. The research also drew on U.S. and international government and nonprofit and nonprofit business reports, country profiles, and payment system analysis.

Main topics covered:

1. Summary

  • Scope and methodology
  • Scope of the report
  • Methodology of the report
  • Market trends
  • Why is the POS installment loan so popular?
  • 2021 as a year of reduction of -10%
  • A robust CAGR of 15% nevertheless expected for 2020-2025
  • Table United States Point-of-Sale Installment Financing Market: Estimated CAGR for 2015-2020 vs 2020-2025 (Percent)
  • Table United States POS Installment Funding Market, 2020-2025, CAGR (USD Billion & Percent Growth)
  • Trends and Opportunities
  • Banks
  • Merchants
  • FinTech
  • A robust and frictionless digital strategy is essential
  • Responsible lending in an economy altered by the coronavirus
  • Various strategies based on credit segmentation

2. Market growth opportunities

  • Strategic considerations for market participants
  • Banks
  • Merchants
  • FinTech
  • A robust and frictionless digital strategy is essential
  • Consumers search and buy via mobile, even if they buy in-store
  • Table Mobile becoming the main channel for e-commerce in the United States, 2018-2021 (percentage)
  • Focus on responsible lending
  • Various strategies based on credit segmentation
  • Accelerate the growth of point-of-sale financing
  • Current pandemic will fuel growth in point-of-sale installment loans

3. Context of the American industry

  • The consumer credit market before POS installment financing
  • Finance companies and credit card / store card lines of credit
  • The opportunity that created POS Finance
  • POS installment loans have shaken up consumer finance by a tiny dollar
  • Consumers are receptive to new ways of buying and paying for their purchases
  • The history of POS financing
  • The growth of e-commerce has stimulated merchants’ appetite for competitive advantages
  • POS financing downstream of e-commerce to a wider market

4. POS funding in the United States

  • Forecast of industry growth
  • 2021 as a year of reduction of -10%
  • A robust CAGR of 15% nevertheless expected for 2020-2025
  • Table United States Point-of-Sale Installment Financing Market: Estimated CAGR for 2015-2020 vs 2020-2025 (Percent)
  • Table United States POS Installment Funding Market, 2020-2025, CAGR (USD Billion & Percent Growth)
  • Summary of the rationale for longer-term projections 2020-2025
  • Afterpay Seizing Market in Australia, US and UK
  • Table Post-payment estimates of POS installment loan opportunities in Australia, US and UK, 2019 (USD billion)
  • Main growth drivers
  • New market niches, new player strategies all contribute to growth
  • Consumers receptive to POS loans
  • Fintechs Leverage Consumer Payments to Build Customer Relationships
  • New strategies of traditional financial institutions
  • Main competitive challenges
  • Challenges dictated by the role of the player in the payment transaction
  • New types of payment friction
  • Regulatory oversight: Business models of point-of-sale lenders call for scrutiny
  • Competition puts pressure on prices

5. The American consumer of POS financing

  • Survey results
  • Key cohorts include African Americans, parents and students
  • Online POS Installment Loans table: Customer demographics (percent of users and percent of total customers)
  • Frequency of use of the online POS loan
  • POS Loan Repayment Periods
  • POS loans by amount borrowed
  • Definition of the characteristics of POS loans
  • Interest rate for POS loans
  • Frequency of use of the POS loan
  • Number of point of sale providers used
  • PayPal Credit is the Most Used POS Loan Provider
  • Men ask for more credit than women
  • POS deposit uses shift from large receipt to smaller items
  • Consumers Avoid New Credit Card Accounts

6. The American POS Fundraising Merchant

  • Significant benefits for traders
  • Consumer demanding products
  • Airlines companies
  • FinTech

7. US Dynamics: traditional players

  • US banks and card issuers join the POS financial market
  • American banks
  • Bank: Citizens Financial
  • Consortium: GreenSky Financial
  • Card issuer: Citibank
  • Card Issuer: JPMorgan Chase
  • Financial company: Synchrony Financial
  • Card networks enter the point-of-sale financing market
  • Instantaneous
  • Visa
  • American Express
  • MasterCard

8. US Dynamics: Fintechs

  • International Fintechs Drive Innovation in US Point of Sale Financing
  • Fintechs targeting consumers with / without credit
  • Table of Fintech volumes, main products and reimbursement methods
  • Klarna
  • PayPal Credit
  • myGini
  • Square installments
  • To affirm
  • After payment
  • Table Year-over-year growth in Afterpay’s business
  • Sezzle

9. International market dynamics

  • Global snapshot
  • Overview
  • European Union
  • Latin America
  • China
  • Western Europe
  • National debt and payment preferences
  • Brazil
  • The largest market in Latin America
  • Mexico
  • Mexico’s e-commerce value more than doubled between 2014 and 2019
  • China
  • The high level of m-commerce in China
  • Tencent
  • Ali Baba

Companies mentioned

  • To affirm
  • After payment
  • Ali Baba
  • American Express
  • Citibank
  • Citizens’ finance
  • GreenSky Financial
  • JPMorgan Chase
  • MasterCard
  • myGini
  • Pay Pal
  • Square installments
  • Synchrony Financial
  • Tencent
  • Visa

For more information on this report, visit https://www.researchandmarkets.com/r/87agqw

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