Lending & Credit Decisioning · Use case

Launch an embedded BNPL product

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Short answer

Instalment credit at checkout needs a real-time decision, a merchant payout and months of servicing afterwards. A lending platform bundles these; the defining questions are who is the lender of record, who funds the receivables and which BNPL rules apply in your markets.

What this use case is

Instalment credit at checkout needs a real-time decision, a merchant payout and months of servicing afterwards. A lending platform bundles these; the defining questions are who is the lender of record, who funds the receivables and which BNPL rules apply in your markets.

Who builds this

Retailers and marketplaces
Vertical SaaS with payments
PSPs adding credit
Neobanks

What your customer sees

  1. 1Chooses "Pay in instalments"
  2. 2Answers a few questions or connects a bank
  3. 3Gets an instant decision
  4. 4Sees the schedule
  5. 5Pays automatically each month

How Lending & Credit Decisioning solves it

1

Customer selects instalments at checkout

Customer selects instalments at checkout

2

Application with identity and data checks

Application with identity and data checks

3

Real-time decision against your policy

Real-time decision against your policy

4

Merchant paid, receivable created

Merchant paid, receivable created

5

Repayment schedule and collections run

Repayment schedule and collections run

6

Arrears, hardship and collections handled

Arrears, hardship and collections handled

Want to have

  1. Checkout integration
  2. Real-time decisioning
  3. Affordability data
  4. Merchant settlement
  5. Repayment scheduling
  6. Customer communication
  7. Hardship and collections
  8. Credit reporting where required

Optional

  1. Open banking affordability
  2. Merchant-funded promotions
  3. Customer self-service portal

Design decisions

Lender of record

You
Partner

control versus regulatory burden.

Funding

Your balance sheet
Partner or facility

margin versus capital.

What to put in your RFP

Product

  • terms
  • markets

Decisioning

  • data
  • rules
  • speed

Money flows

  • merchant settlement
  • repayments

Servicing

  • schedules
  • collections
  • hardship

Regulation

  • lender of record
  • disclosures

Commercials

  • per loan and revenue share
Add these to an RFP

How to evaluate providers for this use case

  1. 1Live BNPL references
  2. 2Decision speed and quality
  3. 3Servicing and collections depth
  4. 4Partner lending options

Pitfalls

  • Treating BNPL as unregulated in markets where rules are arriving
  • Ignoring collections costs
  • Funding shortfalls as volumes grow

What providers will ask you

  1. Markets and merchants
  2. Basket sizes and expected volumes
  3. Credit policy
  4. Funding plan

Other Finlane categories that cover parts of this

This use case is solved mainly with Lending & Credit Decisioning. These categories cover specific parts of it and can be tendered alongside it.

Payment Processing & Acquiring

Checkout integration

Open Banking & Account Data

Affordability data

KYC, KYB & Identity

Borrower verification

Frequently asked questions

Other Lending & Credit Decisioning use cases

Underwrite SMB working capital

Combine open banking, accounting and bureau data to score SMBs and originate flexible credit lines.

Service consumer loans end-to-end

Handle amortization schedules, repayments, hardship flows, statements and collections.

Build a credit card program on modern rails

Combine a card issuer with a decisioning and ledger engine to launch a revolving credit product.

Scope launch an embedded BNPL product with Lending & Credit Decisioning providers

Scope this use case