Point-of-Sale Installment Loans: The U.S. Market and International Perspectives, with COVID-19 Market Impact Assessment
POS installment finance is gaining marketplace traction because it meets needs across stakeholders in digital and physical retailing. It is a showcase for fintechs demonstrating the value created for merchants/shoppers and profits generated for their investors through the technology they offer.
Scope of Report
Consumer credit is a multi-trillion dollar industry in the U.S., with POS installment finance (also called “buy-now, pay-later”) subsumed under the financial results reporting category of "personal loans." This report slices out POS installment loans from their parent category, providing U.S. market size estimates for 2015 vs. 2020, as well as year-by-year projections through 2025. These projections are cast in terms of the anticipated economic and credit policy impact of a coronavirus pandemic-triggered economic contraction.
While focusing on the point-of-sale installment loan industry in the U.S., this report also covers the wider context on POS financing in Asian, European, and Latin American countries. Point-of-Sale Installment Loans: The U.S. Market and International Perspectives, with COVID-19 Market Impact Assessment reviews current consumer borrowing behaviors; strategic positioning initiatives by financial technology companies (fintechs), banks, card issuers and card networks; and the cross-border roll-out of those initiatives across product categories and commerce platforms. It also analyzes each of the principal business models in the industry, examining the potential viability of each model as more players join and bring their own marketing messages, merchant partnerships, revenue models, and targeted consumer cohorts. It provides a complete industry context for POS installment lending, an assessment of the strategies and success of extant and new participants in the sector, and a detailed analysis of the opportunities and challenges to those entering or competing in this fintech sector.
The information contained in this report was obtained from primary and secondary research. Primary research included a proprietary Packaged Facts national online consumer survey fielded in February-March 2020 to measure usage rates for POS installment loans, frequency of usage, size of loans, vendors, and consumer demographics. With a sample size of 2,000, this survey drew on a national online research panels to aggregate a sample that is census representative on the primary demographic measures of age, gender, geographic region, race/ethnicity, and household income.
Secondary research includes general business and trade publications, management consulting reports, investment analyst reports, company financial filings, and vendor-generated survey findings. Research also relied on U.S. and international governmental and non-profit and not-for-profit trade reports, country profiles, and payment system analysis.
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