US-based fintech Galileo has launched a Buy Now, Pay Later (BNPL) solution for banks and fintechs with single-use virtual cards issuance and complete loan servicing. The customisable Galileo BNPL solution will offer banks and fintechs the chance to have a straightforward entry into the BNPL market, which is in demand, while simultaneously enabling a bigger spending power for their customers.

Forecasted to exceed 900 million global users by 2027, the BNPL industry offers a flexible way for shopping and paying; when non-bank BNPL providers offer the service, this is based on a limited amount of customer data, which puts both the provider and the consumer at an increased risk. Galileo’s BNPL solution capabilities Galileo enables clients and banks that provide BNPL to their consumers to be offered financing either through their bank or a sponsoring bank partner that takes into consideration the consumers’ financial health as well as their ability for repayment. Banks or fintech will have a real-time personalised offer displayed in their mobile application and, should the consumer accept the loan offer, their mobile wallet will have a prefunded, single-use virtual card added to be presented either in-store or online at most retailers.

With the bank issued BNPL solution, repayment flexibility is made available to an increased number of consumers in a multitude of places and as opposed to non-bank BNPL providers, either the bank or the fintech carries out underwriting decisions, as they have the best insight and understanding of the customer’s financial history. Furthermore, the total number of instalments is customisable, and Galileo manages and services the loan, including overseeing the repayment schedule, disbursement to the virtual cards, interest and fees assessment, payment processing, and charge off and optional credit reporting. Company representatives have stated in the press release that following Americans' need for flexible financing solutions, Galileo launched an improved BNPL experience that enables banks and fintechs to provide to their customers more valuable loan offers directly from their already existing bank systems.

In addition, for clients that are already part of Galileo’s ecosystem with checking and savings accounts, offering BNPL increasingly simplifies the way in which programme managers execute both payments and disbursements. Galileo Financial Technologies offering and recent developments Galileo Financial Technologies is a financial technology company that provides a platform, open API technology and expertise looking to enable fintechs and emerging and established brands to create financial solutions that are differentiated and help expand the financial frontier. The company aims to remove the complexities associated with payments and financial services innovation through means of flexible, open API building blocks and a secure, scalable platform; furthermore, it supports the issuance of physical and virtual payment cards, as well as mobile push provisioning, amongst others, across industries and geographies.

Earlier in November 2022, Galileo announced a partnership with fintech Pomelo to use its API-enabled platform and power the latter’s ‘Remit Now, Pay Later’ credit card, a solution that was created to extend financial access to US families. A combined credit and international money transfer service, the charge card created by Pomelo aims to enable US families to build and extend their credit access abroad, without them incurring expensive remittance fees. With Galileo providing its payment processing solution, Pomelo was looking to deliver PCI-compliant authorisation, reconciliation, and settlement processing in a secure, fast, and accurate manner.

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