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.
close

Email a Friend

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.

0 comments on “Scooch on over Affirm: JPM Chase enters purchasing financing market”

Online Lenders

BlueVine’s new CMO Patrick Adams on the potential of getting SMB banking right

  • BlueVine has hired its first chief marketing officer.
  • Tearsheet talks to Patrick Adams, who most recently led PayPal's US marketing efforts.
Zachary Miller | October 07, 2020
Online Lenders

Goldman Sachs partners with Walmart to offer SMB loans to online sellers

  • Goldman Sachs has built its retail Marcus brand into a $100 billion bank.
  • It continues to sign partnerships with leading brands to provide financing to their customers.
Zoe Murphy | September 24, 2020
Member Exclusive, Online Lenders, Podcasts

Zest AI’s Mike de Vere: ‘You don’t have to give up economics to be more fair’

  • Machine learning and AI models are changing the face of lending.
  • They're able to clarify the tradeoffs between fairness and economics and optimize them.
Zachary Miller | September 08, 2020
Member Exclusive, Online Lenders

How Fiserv’s partnership with VMware enabled it to launch a PPP application in 8 days

  • Time was of the essence for SMBs when the Cares Act was announced.
  • The two companies stood up a PPP app that was responsible for distributing $1.4 billion in PPP loans.
Zachary Miller | September 04, 2020
Member Exclusive, Online Lenders

‘No knee-jerk reactions’: How LendUp quickly adapted to be resilient during the pandemic

  • Anu Shultes is a cancer survivor with 25 years experience in financial services.
  • She brings her own personal resilience to the challenges her firm faced during the pandemic.
Zachary Miller | August 20, 2020
More Articles