Galileo Launches Customizable Buy Now, Pay Later (BNPL) Solution for Banks and Fintechs

Rhea-AI Summary

Galileo Financial Technologies, owned by SoFi Technologies (NASDAQ: SOFI), announced a new Buy Now, Pay Later (BNPL) solution featuring single-use virtual cards and comprehensive loan servicing. This offering aims to enhance financial flexibility for consumers and assist banks and fintechs in entering the growing BNPL market, expected to exceed 900 million users by 2027. The bank-issued BNPL service utilizes real-time personalized loan offers based on customer financial health, ensuring better repayment options and reducing risks compared to non-bank providers.

Positive

• Launch of customizable BNPL solution enhances financial flexibility for consumers.
• Access to BNPL market for banks and fintechs, leveraging existing systems.
• Utilization of consumer financial health data for underwriting, reducing risks.

Negative

• None.

Galileo to manage and service loans in seamless, bank-issued Galileo Buy Now, Pay Later offering, enabling more financial flexibility for today’s digital consumer

SALT LAKE CITY--(BUSINESS WIRE)-- Galileo Financial Technologies, LLC, a leading financial technology company owned and operated independently by SoFi Technologies, Inc. (NASDAQ: SOFI), today announced a buy now, pay later (BNPL) solution with issuance of single-use virtual cards and complete loan servicing. Banks and fintechs will have access to the customizable Galileo Buy Now, Pay Later solution, offering them easy entry into the in-demand BNPL market and enabling greater spending power for their customers.

The BNPL industry is forecasted to surpass 900 million global users by 2027 and offers a flexible way to shop and pay. However, non-bank BNPL providers offer the service based on very limited customer data, putting both the provider and the consumer at higher risk.

With Galileo, clients and banks that provide Buy Now, Pay Later to their consumers will be offered financing through their bank or a sponsoring bank partner that considers the consumers’ financial health and ability for repayment. A real-time personalized offer is displayed in the bank’s or fintech’s mobile application. If the consumer accepts the loan offer, a prefunded, single-use virtual card will be added to their mobile wallet and presented in-store or online at most retailers.

“As more Americans are looking for flexible financing solutions, Galileo created a better BNPL experience that allows banks and fintechs to make more valuable loan offers to their customers directly from their existing bank systems,” said David Feuer, Chief Product Officer at Galileo. “For our clients who are already part of the Galileo ecosystem with checking and savings accounts, offering Buy Now, Pay Later makes it even more seamless for program managers to execute both payments and disbursements.”

The bank-issued Buy Now, Pay Later solution makes repayment flexibility available to more consumers in more places. Unlike non-bank BNPL providers, underwriting decisions are made by the bank or fintech who have insight and understand the customer’s financial history best. The total number of installments can be customized. Galileo then manages and services the loan, which includes overseeing the repayment schedule, disbursement to the virtual cards, assessment of interest and fees, payment processing, charge off and optional credit reporting.

For more information about the customizable Galileo Buy Now, Pay Later solution, visit www.galileo-ft.com.

About Galileo Financial Technologies

Galileo is a leading financial technology company whose platform, open API technology and proven expertise enable fintechs, emerging and established brands to create differentiated financial solutions that expand the financial frontier. Galileo removes the complexity from payments and financial services innovation by providing flexible, open API building blocks and a secure, scalable, future-proof platform. Trusted by digital banking heavyweights, early-stage innovators and enterprise clients alike, Galileo supports issuing physical and virtual payment cards, mobile push provisioning and more, across industries and geographies. Headquartered in Salt Lake City, Galileo has offices in Mexico City, New York City, San Francisco and Seattle.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221206005195/en/

MEDIA CONTACT:

Alissa Clayton

The Fletcher Group

647.390.9085

alissa@fletchergroupllc.com

Source: Galileo Financial Technologies, LLC

FAQ

What is the new offering from SoFi's Galileo related to Buy Now, Pay Later?

Galileo is launching a customizable Buy Now, Pay Later solution featuring single-use virtual cards and full loan servicing.

How does Galileo's BNPL service differ from non-bank providers?

Galileo's BNPL service uses real-time data on consumers' financial health for underwriting, unlike non-bank providers that rely on limited data.

What are the expected user statistics for the BNPL industry by 2027?

The BNPL industry is forecasted to surpass 900 million global users by 2027.

How will banks benefit from Galileo's BNPL solution?

Banks can offer better loan options directly through their existing systems, increasing customer engagement and spending power.

What does the loan servicing include in Galileo's BNPL offering?

Galileo manages the repayment schedule, disbursement to virtual cards, payment processing, and optional credit reporting.