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

Kabbage partners with GoDaddy to offer capital to entrepreneurs and SMBs

  • Kabbage uses a partnership strategy to pursue growth.
  • This tie-up gives the SMB lender access to GoDaddy's US clients.
Michael Deleon | November 04, 2019
Online Lenders

Behind a rebrand and a new marketplace, SMB lending marketplace Become shuns telephone sales in favor of a full digital experience

  • Become, previously Lending Express, offers an entirely end to end digital lending process for SMBs.
  • The company also announced a $12.5 million investment round.
Zack Miller | October 29, 2019
Online Lenders

‘Like Visa for B2B’: Fundbox raises $176 million and hits $1.5 billion in SMB originations

  • Fundbox hits a major lending milestone to SMBs.
  • The company feels it has a big runway for growth.
Zoe Murphy | September 24, 2019
Online Lenders, Podcasts

LendingPoint’s Tom Burnside: ‘There’s room to grow — we’re early in our journey’

  • LendingPoint has grown its consumer lending business over 9200 percent in three years.
  • CEO Tom Burnside joins us to talk about growth and products.
Michael Deleon | September 23, 2019
Online Lenders

Al Goldstein on Avant’s move into powering digital lending for banks with Amount

  • Avant started six and a half years ago in consumer lending and has transacted over 1 million times.
  • The company is spinning off Amount, its B2B digital lending platform.
Zack Miller | September 13, 2019
More Articles