The times when customers were relying on banks to secure a loan are already in the past. Both well-planned and impulse purchases are growing all over the world, so customers are looking for seamless access to a loan wherever and whenever they want, at the POS (point of sale). If you want to know more about POS lending, just keep on reading below.
POS Lending & Banks
Since banks are usually big, quickly reacting to the ever-changing consumer needs isn’t a simple thing for them at all. Fintech companies (the ones that’re quite agile) have been prioritizing mobile-first point-of-sale financing faster.
As for banks, they’re still the major player when it comes to financing options. Why? It’s simple: because of their cash supplies. So, banks can connect their financing options with consumers at the POS through a partnership with a fintech company. Larger banks command more favorable prices. Besides, are keener on insourcing.
What about acquiring that’s becoming a common thing these days? Well, this is a healthy, highly competitive space where you can find many innovative new companies entering today. You may have heard about Fidelity National Information Services, Inc. (FIS) having the U.K.’s biggest acquirer and America’s 3rd biggest by volume and 2nd by transactions, and a world-renowned eCommerce payment processing company with toeholds in growth markets such as Brazil and India.
In the modern payments ecosystem, banks can either go on regarding the technology-driven disruptors as an obstacle or stand on a higher and smarter base. As a result, they’ll be able to create opportunities by collaborating with fintech. The reality is that banks can’t keep up with the trend of advanced mobile-first lending.
Thankfully, banks aren’t the only payment sources in the modern world of business. If you need quick access to working capital or POS lending, consider turning to a reputable alternative online lender like FirstAmericanMerchant.com.
First American Merchant is an award-winning business funding provider and processor that specializes in the high risk field. FAM offers the cheapest rates, the highest level of security, and the most advanced financing solutions in the industry.
Banks, FinTech & Point-of-Sale Lending
To provide POS loans, banks should use the necessary technology and resources. The good news is that fintech can help banks to offer their loan services seamlessly at a retailers’ point of sale. So, if a bank wants to be a leader in POS consumer lending, it shouldn’t waste time.
When it comes to installment lending, it’s not something new. This type of loans offered at the point of sale has been popular as an alternative payment option outside the U.S. They gained traction among funding seekers in the U.S. some 5 years ago. Digital innovators and startups chose the form as an alternative option that could help them store cards or consumers.
To sum up, customers no longer line up outside banks to get funding. Alternative online lenders have opened new doors for business loans that entrepreneurs can receive without major challenges. Now, consumers are searching for a solution at the point of intent to make a purchase.