2020 has come and gone, and while the year exposed major gaps across nearly every industry, it also set the stage for massive opportunity.
Looking back at the year, point-of-sale financing was the hottest sector in FinTech with leaps in consumer adoption across generations — driving significant growth and investment. With the exception of 2018, there have been year-over-year increases in cumulative funding poured into the point-of-sale financing space, leaving investors optimistic about this space and its growth potential.
Source: Crunchbase Data
However, most of the players currently dominating this space are emerging FinTechs, like Affirm and Klarna, ultimately leaving traditional banks out of the equation.
How are traditional banks responding to this trend? And how can they best compete in this environment with the help of FinTechs?
Enter Barclays and Amount, a new partnership that is sure to expand the possibilities and potential of buy now, pay later (BNPL).
In a recent press release, Barclays US Consumer Bank, a premier financial services partner and co-branded credit card issuer in the United States, announced that it has partnered with Amount, a leading technology provider for financial institutions, to become one of the first major U.S. banks to offer point-of-sale (POS) financing installment options.
With the announcement, Barclays will also be one of the first providers to offer merchants the option of a POS payment under the merchant’s own brand, which presents a unique opportunity for them to deepen connections with their customers.
Adam Hughes, CEO of Amount, and Denny Nealon, CEO of Barclays US Consumer Bank, shared their thoughts on the new partnership, highlighting what it means for both organizations and the impact of buy now, pay later on the payments space.