POS Lending (Point of Sale) is the financial act of allowing consumers to pay off the purchase of large assets in regular installments. Unlike credit cards, the POS lending mechanism has a set credit limit and interest rate. POS loans are determined according to the financial value against each purchase.
Consumer Lending on the other hand is a category of financing catering to individual and household consumers. It provides funding facilities to consumers who engage in the activities of purchasing houses, cars, or any other fixed assets. It includes home and automobile loans, as well as personal loans extended to people who use the funds for individual or family purposes.
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While these facilities are initiated with the aim of enhancing the purchase experience, modern technology has also influenced the monitoring of credit amounts by initiating software and technologies. In today’s blog, we are going to discuss in depth some powerful software that may improve your experience in the consumer lending journey.
Cred
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CRED is an Indian fintech company, based in Bangalore. Founded in 2018 by Kunal Shah, it is a reward-based credit card payments app. Cred also lets users make house rent payments and provides short-term credit lines.
By 2021, the company had onboarded over 5.9 million users and processed about 20% of all credit card bill payments in India. As of April 2021, Cred offered six different products; Cred RentPay, Cred Cash, Cred Pay, Cred Store, Cred Travel Store, etc. However, on 20 August 2021, Cred also launched a Peer-to-peer (P2P) lending feature known as Cred Mint that aims to monetize through its 7.5 million users.
Kunal Shah describes Cred as being a TrustTech company rather than a FinTech, and that his motivation to start Cred comes from solving trust issues in Indian society, which he believes is key to economic prosperity.
Cred App Business model
Deserve
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Deserve Inc. is a leading mobile-first credit card platform built on a cloud-native and API-enabled architecture, which allows partners to offer superior personalized experiences for cardholders.
They partner with financial institutions, fintechs, lenders, and merchant co-brands. Deserve has partnered with world-recognized banks and investment firms such as Goldman Sachs, Master Card, VISA, Pelion, Accel, Crew, Alumni Ventures, etc. Their core mission is to modernize the credit card stack. Through a mobile-first, API-driven, configurable platform, they are digitally transforming credit cards from a piece of plastic to a software platform for payments, rewards, and lending.
Deserve Credit Card Masterclass
Mission Lane
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Mission Lane is a purpose-driven fintech company that leverages advanced technology, data analytics, and machine learning to provide a dignified customer experience to people who are working hard to build or rebuild their credit and improve their financial lives. Mission Lane strives to offer branded products through its sponsor banks with better and easier-to-understand terms than many of the alternatives available to people with less-than-perfect credit or limited credit history.
The company’s digital self-service tools make it easier for customers to stay on top of their accounts. And with responsible use, Mission Lane branded products and tools can help them on their journey to improve their credit. Over three million consumers have chosen Mission Lane, earning high customer ratings on Credit Karma for its market segment. Since its spinoff as an independent company in December 2018, Mission Lane has cumulatively raised over $600 million of equity from leading investors, including Invus Opportunities, QED Investors, LL Funds, funds affiliated with Oaktree Capital Management, and other leading investors to support the company’s mission of setting a new standard of financial services for everyday Americans seeking to improve their financial health.
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Klarna
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Klarna Bank AB, commonly referred to as Klarna is a Swedish fintech company that provides online financial services. The company provides payment processing services for the e-commerce industry, managing store claims and customer payments. The company is a “buy now, pay later” service provider.
The company has more than 5,000 employees, most of them working at the headquarters in Stockholm and Berlin. In 2021, the company handled about US$80 billion in online sales. As of 2011, about 40% of all e-commerce sales in Sweden went through Klarna. In 2021, the company was Europe’s most valuable private tech company, at a $45.6 billion valuation. However, their valuation was cut to $6.7 billion in 2022 after struggling to attract additional outside investment.
More than 500,000 global retailers integrate Klarna’s innovative technology and marketing solutions to drive growth and loyalty, including H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, and Nike. For more information, visit Klarna.com.
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Sunbit
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Sunbit Builds is a fintech company based in LA, California Their technology approves the majority of people who apply and eases the stress of paying for life’s expenses by giving people more options on how and when to pay.
Sunbit offers a next-gen, no-fee credit card and point-of-sale lending technology available at over 23,000 service locations, including auto dealership service centers, optical practices, dentist offices, and specialty healthcare services. This offers cardholders an ideal way to manage expenses, all from a single card managed through the MySunbit App.
Thus these software and applications have enabled the consumer lending process to be smooth and efficient and have increased its adaptability among its users.