Galileo updates its Buy Now, Pay Later solution

In essence, this expansion allows banks and fintechs to provide cardholders with new post-purchase instalment payment options through their existing debit or credit card accounts. The new API-enabled BNPL post-purchase offering complements Galileo's existing pre-purchase BNPL service, and it was designed for banks and fintechs aiming to offer their customers more flexible financing options. This new offering supports repayment options for both existing debit and credit programmes within established financial relationships. 

According to study conducted by Juniper, BNPL is expected to surpass 900 million global users by 2027, presenting a significant market opportunity for banks and fintechs. Representatives from Galileo cited by Yahoo Finance commented on the new offering, highlighting its ability to bridge the gap between cards and loans. They noted that it allows banks and fintechs to strengthen customer relationships by providing flexible financing options for both credit and debit customers. They also emphasised that expanding pay-over-time opportunities through post-purchase financing signifies a shift towards a new era of responsible lending.

Main benefits for customers

Post-purchase BNPL offers several benefits for banks, fintechs, and their customers, including: 

• Entry point into lending: Galileo's post-purchase BNPL service provides a streamlined pathway for fintechs primarily in the deposit space to venture into lending. 
• Incremental revenue: financial institutions and fintechs can generate additional revenue through instalment fees. 
• Financial access: post-purchase BNPL financing, traditionally exclusive to credit accounts, can now be extended to debit accounts. 
• Market differentiation: banks and fintechs can improve the value of their debit and credit programmes with a flexible and transparent financing model. 
• Transparent payment terms: unlike traditional credit card interest, post-purchase BNPL with instalment fees offers consumers visibility into the total cost associated with each purchase before committing. 
• Flexible financing: post-purchase BNPL transforms conventional debit into a dynamic financial tool, providing flexibility for responsible and efficient money management.

Galileo officials further talked about the importance of supporting payment option accessibility as part of their commitment to promoting financial inclusion. They noted that one of the major advantages of the post-purchase BNPL offering is its compatibility across all merchants where credit and debit cards are accepted.

In March 2024, Galileo expanded its relations with The Bancorp Bank to offer real-time payments via The Clearing House. Using the RTP network from The Clearing House, Galileo and The Bancorp are delivering instant money movement between bank accounts, enabling fintechs and brands to solve the longstanding cash flow challenges faced by small businesses (SMBs) and consumers looking to get fast access to their funds.