Usio Announces Unique Point-of-Sale Credit Solution for Businesses, Implemented Without Any Lending Risk for Usio

Rhea-AI Summary

Usio, Inc. (Nasdaq: USIO) has launched a new Point-of-Sale Credit solution, enabling businesses to offer instant credit without the risks associated with consumer lending. The market for point-of-sale consumer lending is projected to double from $92 billion in 2019 to $182 billion in 2023. This solution improves customer satisfaction, speeds payments to businesses, and does not require integration. Consumers can choose between a no-interest option or competitively priced longer-term loans. Instant credit is increasingly preferred over traditional credit cards for larger purchases.

Positive

• Launch of Point-of-Sale Credit solution enhances customer offerings.
• Market for point-of-sale lending expected to reach $182 billion in 2023.
• Immediate payment to businesses with funds deposited next day.
• No risk to businesses while offering consumer credit options.

Negative

• None.

Studies show instant credit at point-of-sale and buy-now-pay-later is preferred by consumers over the use of credit cards

SAN ANTONIO--(BUSINESS WIRE)-- Usio, Inc: (Nasdaq:USIO), a leading FinTech integrated payment solutions provider, today announced implementing its new Point-of-Sale Credit solution, enabling businesses to offer instant credit to their customers without absorbing any of the risks of consumer lending.

“Point-of-sale consumer lending is growing faster than any other unsecured lending, growing from $92 billion in outstanding loan balances in 2019 to a predicted $182 billion in 2023, according to The Ascent,” said Louis Hoch, President and CEO of Usio. “Our new Point-of-Sale Lending solution enables businesses to quickly and easily offer instant POS credit to their customers, without the challenge of integration or credit concerns. Any business that deals directly with customers over relatively larger-priced purchases can use this instant credit as a way to potentially win more business at the point of sale.”

According to The Ascent, the percentage of people who have used a buy now pay later service grew 62% across all age groups between July 2020 and March 2021, with the exception of those over the age of 54, which saw a 98% increase in usage.

Buy now pay later is preferred by consumers over the use of credit cards, according to the Bread Research Report on Payment Preferences, published in October 2019. For example, 53% of people would prefer to make a $200 purchase in four equal interest-free payments, avoiding the high interest that would be incurred on a credit card during that period. Monthly installments come to the forefront with larger purchase amounts, where 49% would prefer to make monthly installment payments on a $1,000 purchase and a full 69% would prefer monthly payments for a $5,000 purchase. Only 14 to 15% would prefer to use a credit card for such larger purchases.

No integration is required with Usio’s Point-of-Sale Lending solution. Businesses receive payment faster, with funds deposited the next day. Point-of-Sale Lending improves customer satisfaction and loyalty, and gives organizations a competitive edge by offering customers flexible payment options over various periods of time. Most importantly, businesses receive all the advantages of providing an instant lending solution to their customers without absorbing any of the risk.

Consumers have the option of a no interest buy now pay later installment loan of 6 weeks or less, or longer durations with interest rates that are aggressively priced with market competitive rates. Revenue recognition at the merchant level will occur at the time of the sale, while funds (net of any potential associated expenses) will settle the next day.

About Usio, Inc.

Usio, Inc. (Nasdaq: USIO), a leading, cloud-based, integrated FinTech electronic payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, crypto exchanges, and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to their clients. The company, through its Usio Output Solutions division offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas, and Franklin, Tennessee, just outside of Nashville.

FORWARD-LOOKING STATEMENTS DISCLAIMER

Except for the historical information contained herein, the matters discussed in this release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management's intent, belief, and expectations, such as statements concerning our future and our operating and growth strategy. These forward-looking statements are identified by the use of words such as "believe," "intend," "look forward," "anticipate," "schedule,” and "expect" among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks related to an economic downturn as a result of the COVID-19 pandemic, the realization of opportunities from the IMS acquisition, the management of the Company's growth, the loss of key resellers, the relationships with the Automated Clearinghouse network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new tax legislation, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2021. One or more of these factors have affected, and in the future, could affect the Company’s businesses and financial results in the future and could cause actual results to differ materially from plans and projections. The Company believes that the assumptions underlying the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to management. The Company assumes no obligation to update any forward-looking statements, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220906005029/en/

Paul Manley

Senior Vice President, Investor Relations

paul.manley@usio.com

612.834.1804

Source: Usio, Inc.

FAQ

What is Usio's new Point-of-Sale Credit solution?

Usio's Point-of-Sale Credit solution allows businesses to offer instant credit to customers without the risks associated with consumer lending.

What is the projected growth for point-of-sale consumer lending?

The market for point-of-sale consumer lending is expected to grow from $92 billion in 2019 to $182 billion in 2023.

How does Usio's Point-of-Sale Credit solution benefit businesses?

Businesses benefit from faster payment processing, increased customer satisfaction, and no exposure to lending risks.

What are consumers' preferences for payment methods according to Usio?

A significant percentage of consumers prefer buy-now-pay-later options over credit cards, especially for larger purchases.