Katapult Launches Katapult Layoff Insurance Powered by Harmonic
Katapult Holdings (NASDAQ: KPLT) has launched a new product, Katapult Layoff Insurance, powered by Harmonic, aimed at providing financial security for customers facing involuntary job loss. This offering provides up to $2,000 in cash benefits for a low monthly payment, accessible through the Katapult mobile app and website. Eligible customers can claim benefits after a 90-day waiting period by proving state unemployment eligibility. The insurance offers a simple claims process, flexible payouts, and can supplement other income assistance. This initiative underscores Katapult's commitment to providing financial solutions for nonprime consumers.
- Launched Katapult Layoff Insurance, providing up to $2,000 for involuntary job loss.
- Enhances financial security for Katapult customers.
- Simple claims process and flexible payout options.
- Accessible via mobile app and website.
- Supports nonprime consumers in financial hardship.
- Aligns with Katapult's dedication to financial solutions for underserved communities.
- Eligibility for benefits only after a 90-day waiting period.
- to existing or new Katapult LTO customers.
- Potentially low uptake due to additional monthly payment requirement.
Insights
Katapult Holdings' introduction of layoff insurance offers significant potential for enhancing customer loyalty and mitigating financial risk for nonprime consumers. This launch can be seen as a strategic move to capture a larger market share by addressing acute financial distress scenarios, which are particularly relevant given the Federal Reserve's statistics on emergency savings. From a financial standpoint, offering this insurance can drive customer retention and expand Katapult's value proposition.
Revenue Streams: The introduction of a low monthly payment for layoff insurance creates an additional revenue stream. This revenue is incremental and could potentially buffer against market volatility in their primary lease-to-own (LTO) business.
Risk Management: While the insurance product could enhance customer loyalty, it also introduces risks. The insurer, Harmonic, will bear the primary risk of payouts, but Katapult needs to ensure robust underwriting to avoid excessive claims that could indirectly affect their financial health through reputational damage or increased costs.
Market Position: This product places Katapult in a unique position within the fintech sector, potentially attracting new customers who value such financial safety nets, thus broadening their market reach and helping differentiate from competitors.
From a market perspective, Katapult's layoff insurance reflects a keen awareness of consumer pain points, particularly in the nonprime sector. This demographic often faces greater financial instability, making income protection a valuable offering.
Consumer Demand: By addressing the gap highlighted by Federal Reserve data—that 37% of US adults cannot cover a $400 emergency expense—Katapult is tapping into a significant need within the market. This product is likely to resonate well with consumers who are already using or considering LTO solutions.
Competitive Landscape: The introduction of layoff insurance could position Katapult ahead of other fintech companies that do not offer similar protections. This differentiation can be a compelling factor when consumers compare financial service providers.
Marketing Potential: The simplicity and accessibility of this insurance through Katapult’s app and website can enhance user engagement and app downloads, driving further customer acquisition and retention in a competitive market.
New Product Offers Income Protection for Katapult Customers
PLANO, Texas, June 06, 2024 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (NASDAQ: KPLT), an e-commerce-focused financial technology company, announced the launch of Katapult Layoff Insurance, powered by Harmonic today.
This new offering provides a cash benefit of up to
Katapult’s latest offering underscores the company’s continued dedication to providing critical financial solutions to nonprime consumers. Federal Reserve data show that
“We selected Katapult as a strategic partner for our Layoff Insurance program because they are very upfront and transparent in dealing with one of consumer's biggest fears - losing their job and being unable to make their payments,” Harmonic’s CEO and co-Founder Andrew Drake said. “By offering Layoff Insurance to their customers, Katapult gives their customers a chance to stop worrying about one thing that isn't normally mentioned in an online financial transaction - how are payments going to be made if the customer loses their job?”
Customers can access Katapult Layoff Insurance through Katapult’s mobile app and website. Enrollment is immediate, with policyholders becoming eligible for a claim after a 90-day waiting period. This enables customers to claim their benefits quickly and easily by showing proof of eligibility for state unemployment benefits.
Key features of Layoff Insurance include:
- Simple claims process: Fast receipt of funds upon submission of required documentation.
- Flexible payout choices: Freedom to receive the
$2,000 payout via check or apply the benefit directly to a Katapult lease. - Supplements existing benefits: The payout is in addition to government income assistance or severance.
- Continued Coverage Option: Customers can choose to extend their insurance post-lease for uninterrupted protection.
"We are excited to bring this new offering to our loyal consumer base," said Orlando Zayas, CEO of Katapult. "Income protection insurance directly addresses the financial vulnerabilities faced by many Americans who are experiencing an involuntary layoff. By opening up access to this new offering alongside our innovative lease-to-own (LTO) solution, we continue to provide underserved consumers with financial resources they need to power their daily lives.”
Consumers interested in our new income protection insurance product or unlocking financial purchasing power through personalized lease-to-own plans can download the Katapult app in the Apple App Store or Google Play. For more information on our insurance or LTO offering, consumers can also visit our website. Only those consumers who are currently a Katapult LTO customer or those entering a new lease may participate in our new income protection insurance plan.
If you are a retailer interested in directly integrating Katapult’s LTO solution to boost your business and customer base, please contact sales@katapult.com for more information.
About Katapult
Katapult Holdings, Inc. (NASDAQ: KPLT) is a technology driven lease-to-own platform that integrates with omni-channel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. non-prime consumers. Through our point-of-sale (POS) integrations and innovative, mobile app featuring Katapult Pay™, consumers who may be unable to access traditional financing can shop a growing network of merchant partners. Our process is simple, fast, and transparent. We believe that seeing the good in people is good for business, humanizing the way underserved consumers get the things they need with payment solutions based on fairness and dignity.
About Harmonic
Harmonic Financial Technology integrates insurance services into everyday products, leveraging scalable technology, customizable user flows, and a robust compliance stack. This enables businesses to embed insurance offerings into their services, helping consumers secure necessary coverage and businesses to generate new revenue streams. For more information, visit harmonicft.com.
Media Inquiries:
Jennifer Kull
ir@katapult.com
FAQ
What is Katapult Layoff Insurance?
How can I access Katapult Layoff Insurance?
When is a customer eligible to claim Katapult Layoff Insurance benefits?
What are the payout options for Katapult Layoff Insurance?
Who can participate in Katapult Layoff Insurance?
