With Galileo’s new Buy Now, Pay Later (BNPL) solution powered by Mastercard, you can offer your customers flexible short-term installment loans (up to $500) to help pay off large and unexpected purchases. This allows customers to receive a loan directly from their bank, rather than using a third-party service at point of sale or adding to their credit card debt.
You have strong flexibility in how you design your BNPL offering. Galileo works directly with you to determine the varying terms, including the number of installments, frequency of repayment, fees, etc. that meet your business requirements.
Here is a brief overview of how BNPL works:
- You pre-approve a customer to make a one-time purchase using your BNPL service, with a minimum purchase amount of $50.
- You present an offer within your application.
- Upon customer acceptance of the offer, you issue a single-use virtual card which is provisioned to the customer’s mobile wallet.
- The customer makes a purchase using the single-use virtual card.
- When the customer uses the card, it is removed from their wallet and is unusable by the customer.
- You create a loan that the cardholder will pay off in installments.
A single parent unexpectedly needs to replace their dishwasher at home. They have not budgeted for a significant purchase and are weary of adding to their credit card debt. Instead, they apply and are approved for a single purchase of up to $500 through their bank’s BNPL service. This allows the family to buy the new dishwasher today and make payments on the purchase amount in installments.
Galileo Buy Now, Pay Later can benefit your business in the following ways:
- Easier entry into the BNPL market — Integrate BNPL services into your existing products using Galileo’s Program API.
- No merchant network required — By default, the single-use virtual card issued by Mastercard is accepted where Mastercard is accepted unless a merchant has opted out.
- Control over underwriting — You can make underwriting decisions based on your own customer knowledge and risk tolerance, rather than relying on external BNPL providers.
- Loan management — Galileo manages your installments loans and offers the flexibility to add incremental pricing and edit the loan frequency and duration.
Galileo provides a platform for you to offer an on-demand BNPL solution to your customers. Galileo has built two key products to offer a complete BNPL offering:
- Single-use virtual cards — Instant issuance of a virtual card powered by Mastercard Installments program. See Setup for Single-Use Virtual Card for more details.
The single-use virtual card can be offered as a standalone solution if you already have loan servicing capabilities.
- Installment loans — Loan creation with payment schedule, repaid in installments. See Setup for Installment Loans for more details.
Additionally, Galileo also provides reporting and controls for you to monitor BNPL activity.
For single-use virtual card, Galileo offers:
- Card transaction reporting — Posted transactions are reported daily via RDF.
- Real-time events reporting — Galileo reports posted and pending card transactions in real-time via the Events API.
- Authorization controls — You may participate in authorization decisions via the Auth API.
For our installment loans product, Galileo offers two daily reporting file exports:
- Daily Loan Status — List of the current loans, subproducts, statuses, and installment due dates.
- Daily Transaction — Details on daily transactions related to loans.
Updated about 1 month ago