Online lenders

Scooch on over Affirm: JPM Chase enters purchasing financing market

  • JPM Chase plans to enter the point of sale lending market.
  • With 'My Chase Plan', cardholders will be able to finance purchases of $500 and above.
Scooch on over Affirm: JPM Chase enters purchasing financing market

JPM Chase is preparing to launch an option for cardholders to pay in installments for purchases over $500 and run up loans on bigger ticket items.

What’s happening: ‘My Chase Plan’ was unveiled by JPMorgan during the company’s investor day in New York on Tuesday. The tool allows card customers to select from past purchases of more than $500 and choose to finance them over a longer period with monthly fees, rather than an interest-based repayment

What’s the big deal: Purchase financing is a quickly growing trend. Alternatively knows as POS financing, more merchants and lenders are making it easy for customers to finance single purchases at the point of sale.

  • Mastercard estimates the instant financing market at $1.7 trillion.
  • More than a quarter of customers have used instant financing when shopping online.

There are a few banks like Regions and Fifth Third that are actively growing in this market. But, generally, this is business lost by banks and credit cards and is going to alternative lenders. Just 3 percent of banks and 12 percent of credit unions said that point of sale loans were a priority in 2019, according to research from Cornerstone Advisors.

Alternative lenders like Affirm, Greensky, and Klarna are leading the charge for consumer POS lending.

Other cards offer built-in installment plans: JPM Chase isn’t the first to introduce POS financing into its credit cardsAmex and Israel’s Isracard, for example, offer credit cards with built-in installment loans.

Online lenders, Podcasts

TS Lending Podcast 3: How SMB lenders scale — JPM Chase gets into POS lending — Amazon thinking about lending?

  • Dan and Zack talk about the techniques top SMB lenders use to grow at scale.
  • Also, decentralized credit scoring? Dan explains what it is and how it's being used.
Tearsheet Editors | March 20, 2019
Online lenders, Podcasts

Using fintech to improve financial wellness with Salary Finance’s Dhiren Master

  • Employees with financial worries aren't as productive or engaged.
  • Salary Finance works with employers to help their people get out of debt and start saving.
Tearsheet Editors | March 18, 2019
Online lenders

How online lenders attract and service the evolving SMB borrower

  • SMBs always need money to finance their businesses.
  • But how they shop for loans and their education about finance has changed.
Michael Deleon | March 13, 2019
Online lenders

Forget about digital marketing, SMB lenders double down on partnerships for growth

  • Direct and digital marketing play a role in growing underwriting for top SMB lenders.
  • But it's partnerships that provide the real key to growth.
Michael Deleon | March 06, 2019
Online lenders

‘Stop pitting misery against misery’: How TrueAccord is turning debt collections into a financial service

  • In a VC money-fueled world focused on growth, debt collection gets overlooked.
  • TrueAccord aims to be a better experience for borrowers.
Zack Miller | March 04, 2019
More Articles