Insights into the US Point-of-Sale Installment Loans Market to 2025 - Key Growth Drivers - ResearchAndMarkets.com

DUBLIN--()--The "Point-of-Sale Installment Loans: The U.S. Market and International Perspectives, with COVID-19 Market Impact Assessment" report has been added to ResearchAndMarkets.com's offering.

In the U.S., consumers have for decades primarily relied on a mix of credit cards, home equity lines of credit, or personal loans when purchasing large ticket items, with the credit card particularly entrenched as the preferred pay-over-time product. Shucking off familiar processes and payment forms, financial technology companies (fintechs) have been developing dozens of new point-of-sale (POS) installment financing products. They are not following a uniform approach, but instead are directing their solutions to the various structural points of friction in the payments industry. They are imagining new processes (not just improving old ones) that create greater ease and value for consumers, and that create sufficient value to merchants to more than offset the hefty percentage of sales they are charged by fintechs.

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.

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 of 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.

Key Topics Covered:

1. Executive Summary

  • Scope & Methodology
  • Scope of Report
  • Report Methodology
  • Market Trends
  • Why Is POS Installment Lending So Hot?
  • 2021 as Year of -10% Retrenchment
  • Robust 15% CAGR Nonetheless Projected for 2020-2025
  • Table U.S. Point-of-Sales Installment Financing Market: Estimated CAGR for 2015-2020 vs. 2020-2025 (percent)
  • Table U.S. POS Installment Financing Market, 2020-2025, CAGR (billion dollars and percent growth)
  • Trends and Opportunities
  • Banks
  • Merchants
  • Fintechs
  • Robust and Frictionless Digital Strategy Is Essential
  • Responsible Lending in Coronavirus-Altered Economy
  • Diverse Strategies Based on Credit Segmentation

2. Market Growth Opportunities

  • Strategic Considerations for Market Participants
  • Banks
  • Merchants
  • Fintechs
  • Robust and Frictionless Digital Strategy Is Essential
  • Consumers Research and Shop Via Mobile, Even if They Buy In-Store
  • Table Mobile Becoming Lead Channel for E-commerce in the U.S., 2018-2021 (percent)
  • Emphasis on Responsible Lending
  • Diverse Strategies Based on Credit Segmentation
  • Accelerating POS Finance Growth
  • Current Pandemic Will Fuel Growth of POS Installment Lending

3. U.S. Industry Context

4. POS Financing in the U.S.

  • Forecasting Industry Growth
  • 2021 as Year of -10% Retrenchment
  • Robust 15% CAGR Nonetheless Projected for 2020-2025
  • Table U.S. Point-of-Sales Installment Financing Market: Estimated CAGR for 2015-2020 vs. 2020-2025 (percent)
  • Table U.S. POS Installment Financing Market, 2020-2025, CAGR (billion dollars and percent growth)
  • Summary of Rationale for Longer-Term 2020-2025 Projections
  • Afterpay Seizing Market in Australia, U.S., and U.K.
  • Table Afterpay Estimates of Opportunity for POS Installment Lending in Australia, U.S., and U.K., 2019 (billion dollars)
  • Key Growth Drivers
  • New Market Niches, New Player Strategies All Contribute to Growth
  • Consumers Receptive to POS Loans
  • Fintechs Leverage Consumer Payments to Build Customer Relationships
  • New Strategies from Traditional Financial Institutions
  • Key Competitive Challenges
  • Challenges Dictated by Player's Role in Payment Transaction
  • New Types of Payment Friction
  • Regulatory Oversight: POS Lenders Business Models Invite Scrutiny
  • Competition Pressures Prices

5. The U.S. POS Financing Consumer

  • Survey Findings
  • Key Cohorts Include African-Americans, Parents, and College Students
  • Table Online POS Installment Loans: Customer Demographics (percent who use and percent of total customers)
  • Frequency of Online POS Loan Usage
  • POS Loan Pay-Off Periods
  • POS Loans by Amount Borrowed
  • Defining Characteristics of POS Loans
  • Interest Rates for POS Loans
  • Frequency of POS Loan Use
  • Number of POS Providers Used
  • PayPal Credit Is Most Used POS Loan Provider
  • Men Request More Credit than Women
  • Uses of POS Installment Move from Large Ticket to Smaller Ticket Items
  • Consumers Avoid New Credit Card Accounts

6. The U.S. POS Financing Merchant

7. U.S. Dynamics: Traditional Players

  • U.S. Banks and Card Issuers Join POS Finance Market
  • U.S. Banks
  • Bank: Citizens Financial
  • Consortium: GreenSky Financial
  • Card Issuer: Citibank
  • Card Issuer: JPMorgan Chase
  • Finance Company: Synchrony Financial
  • Card Networks Enter POS Finance Market
  • Snapshot
  • Visa
  • American Express
  • Mastercard

8. U.S. Dynamics: Fintechs

  • International Fintechs Drive Innovation in U.S. POS Finance
  • Fintechs Targeting Consumers With/Without Credit
  • Table Fintech Volumes, Lead Products, and Repayment Methods
  • Klarna
  • PayPal Credit
  • myGini
  • Square Installments
  • Affirm
  • Afterpay
  • Table Year-Over-Year Growth of Afterpay's Business
  • Sezzle

9. International Market Dynamics

  • Global Snapshot
  • Overview
  • European Union
  • Latin America
  • China
  • Western Europe
  • National Debt and Payment Preferences
  • Brazil
  • Largest Latin American Marketplace
  • Mexico
  • Mexico's E-Commerce Value More than Doubled Between 2014 and 2019
  • China
  • China's High Level of M-commerce
  • Tencent
  • Alibaba

Companies Mentioned

  • Affirm
  • Afterpay
  • Alibaba
  • American Express
  • Citibank
  • Citizens Financial
  • GreenSky Financial
  • JPMorgan Chase
  • Mastercard
  • myGini
  • Paypal
  • Square Installments
  • Synchrony Financial
  • Tencent
  • Visa

For more information about this report visit https://www.researchandmarkets.com/r/6ly2up

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Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com

For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900