Ally Expands Financing Into Retail With Mastercard Vyze Partnership

Rhea-AI Summary

Ally Lending, the personal lending division of Ally Financial (NYSE: ALLY), has partnered with Mastercard's Vyze to offer point-of-sale retail financing. This partnership allows Ally to serve as the first installment loan lender on the Vyze platform, targeting higher-ticket sales. Recent data indicate that 74% of consumers find installment plans helpful for budgeting, while merchants see an average 32% increase in sales when offering such options. Ally will provide a digital application process for loans up to $40,000 with flexible repayment terms, enhancing customer choice in financing.

Positive

• Partnership with Vyze enhances Ally's presence in point-of-sale retail financing.
• Potential for increased sales for merchants, averaging a 32% rise when offering financing.
• Consumer interest in installment payments, with 74% finding them beneficial for budgeting.

Negative

• None.

CHARLOTTE, N.C., Aug. 25, 2020 /PRNewswire/ -- Ally Lending, the personal lending arm of Ally Bank, a subsidiary of Ally Financial Inc. (NYSE: ALLY), today announced its partnership with Vyze, Mastercard's leading alternative financing platform for retailers. Ally's entrance into point-of-sale retail financing builds on its deep experience and rapidly growing footprint in healthcare and home improvement lending. Ally Lending will serve as the first installment loan lender on the Vyze platform, giving thousands of retail merchants access to a financially stable lender for higher-ticket sale options.

The budget-friendly, "pay over time" trend continues to gain momentum in the U.S. According to a recent Business Insider report, 74% of those surveyed find installments helpful for budgeting and 70% think installments help alleviate the stress of making a larger purchase.¹ Alternative financing options benefit not only consumers, but also retailers and merchants who offer affordable credit options to their shoppers. Merchants who offer point-of-sale financing options see on average a 32% increase in sales and a 75% increase in order value.² Through its partnership with Vyze, Ally Lending provides merchants with a way to give their customers choice, assurance and simplicity, ultimately resulting in more sales.

"In today's economic environment, flexible, affordable financing options that protect consumers' and businesses' long-term financial health have never been more important," said Hans Zandhuis, head of Ally Lending. "Mastercard's deep experience in global payment and technology positions Vyze as a leader in the point-of-sale lending market. Together, our partnership gives merchants, who want to offer consumers trusted and stable installment loan options, a powerful, digital option."

On the Vyze platform, Ally Lending will offer a comprehensive installment lending solution with a range of consumer payment options, giving shoppers the purchasing power they need for big- and small-ticket goods and services. Ally Lending brings a fully digital application process to Vyze for purchases up to $40,000 with monthly fixed-rate installment loans extending from 6 to 60 months and flexible promotional offerings.

"Partnering with Ally Lending allows us to continue to grow customer choice and payment flexibility in the retail sector," said Mitch Ferro, CEO of Vyze for Mastercard. "This opens the door for merchants to offer their shoppers a proven, trusted lending partner in Ally Lending, whose dedication to customer service and 'doing right' aligns with ours. This partnership will strengthen customer loyalty for the many retailers we work with."

To learn more, please visit allylending.com.

¹Source: "The Point-of-Sale Financing Report." September 2019. Business Insider Intelligence.

²Source: FinTech World Report 2019.

About Ally Financial Inc.

Ally Financial Inc. (NYSE: ALLY) is a leading digital financial-services company with $184.1 billion in assets as of June 30, 2020. As a customer centric company with passionate customer service and innovative financial solutions, we are relentlessly focused on "Doing it Right" and being a trusted financial-services provider to our consumer, commercial, and corporate customers. We are one of the largest full-service automotive finance operations in the country and offer a wide range of financial services and insurance products to automotive dealerships and consumers. Our award-winning online bank (Ally Bank, Member FDIC and Equal Housing Lender) offers mortgage lending, personal lending, and a variety of deposit and other banking products, including savings, money-market, and checking accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs). Additionally, we offer securities-brokerage and investment-advisory services through Ally Invest. Our robust corporate finance business offers capital for equity sponsors and middle-market companies.

For more information and disclosures about Ally, visit https://www.ally.com/#disclosures.

For further images and news on Ally, please visit http://media.ally.com.

About Mastercard Vyze
Vyze is Mastercard's leading financial technology platform that connects merchants with lenders to provide best-fit financing at checkout in store and online. The waterfall solution matches consumers with the best lending product for their needs, selected from a number of different financial products. This enables merchants to offer their customers choice, assurance, and simplicity, while driving increased loyalty and approval rates.

Contact:

Justin Nicolette
Ally Public Relations
justin.nicolette@ally.com

View original content:http://www.prnewswire.com/news-releases/ally-expands-financing-into-retail-with-mastercard-vyze-partnership-301117292.html

SOURCE Ally Financial

FAQ

What is the recent partnership announced by Ally Financial?

Ally Financial has partnered with Mastercard's Vyze to offer point-of-sale retail financing.

How will Ally Lending benefit retailers?

Retailers can expect an average sales increase of 32% by offering installment financing through Ally Lending.

What is the maximum loan amount available through Ally Lending on the Vyze platform?

Ally Lending offers loans up to $40,000 on the Vyze platform.

What are the repayment terms for loans from Ally Lending via Vyze?

Repayment terms range from 6 to 60 months with fixed monthly rates.

Why is point-of-sale financing gaining popularity?

74% of consumers find installment payments helpful for budgeting, increasing demand for such financing options.