Fast-track BNPL: A smarter way for FIs to expand their product portfolio

For many FIs, entering the BNPL space can feel like a huge and expensive undertaking, involving a new proposition, a new customer journey, new merchant relationships, additional risk considerations and new operational processes.

But BNPL does not always have to begin with a completely new product.

One of the most practical entry points FIs have is to build BNPL around the relationships, cards and accounts they already have. With post-purchase BNPL, the customer makes a purchase as normal, then converts an eligible transaction into instalments afterwards, enabling them to manage their finances in a way that feels more planned, flexible and manageable. At the same time, it also allows FIs to avoid the hassle of creating a new checkout journey, securing acceptance with every merchant from day one or asking customers to change how they pay.

This gives FIs a more controlled way to enter the BNPL space. They can start small and decide which transactions qualify, for example by purchase amount, merchant type, customer segment or risk profile. They can also define the instalment plans available, including repayment periods, fees and limits. This means BNPL can be introduced with confidence, tested with specific groups of customers and expanded over time.

BNPL does not have to begin with a blank sheet of paper. Sometimes, the strongest starting point is the transaction that has already happened.