Banks and fintechs working with Galileo can now provide responsible, intelligent installment financing options for SMBs seeking more flexibility for big purchases
SALT LAKE CITY, October 05, 2023--(BUSINESS WIRE)--Galileo Financial Technologies, LLC, a leading financial technology company owned and operated independently by SoFi Technologies, Inc. (NASDAQ: SOFI), announced today that its Galileo Buy Now, Pay Later (BNPL) offering is now available for lenders to offer it as a service for their small business clients (SMBs).* In partnership with Mastercard, banks and fintechs working with Galileo can seamlessly and securely offer installment financing options to small businesses via Mastercard Installments, providing them with more flexibility to make larger purchases and manage their cash flow.
Available financing options for SMBs are complicated, application processes are slow and funding levels are inadequate. Research from Mastercard found that keeping up with rising costs (47%) is the top concern of small business owners as they adapt to new realities, and over eight in 10 small business owners said they are looking for faster and easier access to capital (Mastercard, 2022).
Banks continue to be uniquely positioned to build clients’ trust by using the data they already have to provide SMBs with timelier and more responsible BNPL offers. With Galileo Buy Now, Pay Later for B2B, the lending partner likely considers the small business’ financial health and ability for repayment and can customize the total number of installment payments for purchase-based financing. With the Galileo loan management platform clients can oversee the repayment schedule, disbursement to the virtual cards running on the Mastercard Installments program, assessment of interest and fees, payment processing, charge offs and optional credit reporting.
"Following our successful launch of Galileo Buy Now, Pay Later, which provides fintechs and financial institutions with a solution to offer their consumers flexible payment options, Galileo recognized the growing need to provide the same level of choice and transparency for B2B lenders whose small business customers need better access to credit," said David Feuer, Chief Product Officer at Galileo. "Leveraging the power of the Mastercard Installments program, we extended our platform to give small business owners the opportunity to do more with their money through increased access to funds."
Mastercard Installments brings immediate acceptance so that small businesses can access their installment loan through a digital virtual card for critical purchases and investments–both in store and online–such as capital improvements, repairs, or inventory. Millions of Mastercard merchants of all sizes accept these payments today to offer more options. They are paid in full and can benefit from faster receivables and higher ticket sales. These transactions are all backed by the security and transparency of the Mastercard network, including dispute resolution and Zero Liability protection.
"Our goal is to provide small business owners with solutions and resources to help their businesses grow and thrive," said Ginger Siegel, North America Small Business Lead at Mastercard. "We are thrilled to expand our partnership with Galileo to now support this critical segment with credit options and payment flexibility through qualified lenders. It offers them peace of mind to pay back their loans over time, freeing them up to focus on what matters: scaling and optimizing their operations."
For more information about driving profitable growth through Galileo Buy Now, Pay Later for businesses, visit www.galileo-ft.com/products/credit-and-lending/.
*Programs with over four installments or whose customers are incorporated entities may be subject to additional lending regulations and consumer protections, including Regulation Z and state lending laws.
About Galileo Financial Technologies
Galileo Financial Technologies, LLC and certain of its affiliates collectively comprise a financial technology company owned and operated independently by SoFi Technologies, Inc. (NASDAQ: SOFI) that enables fintechs, financial institutions, and emerging and established brands to build differentiated financial solutions that deliver exceptional, customer-centric experiences. Through modern, open APIs, Galileo’s flexible, secure, scalable and fully integrated platform drives innovation across payments and financial services. Trusted by digital banking heavyweights, early-stage innovators and enterprise clients alike, Galileo supports issuing physical and virtual payment cards, mobile push provisioning, tailored and differentiated financial products and more, across industries and geographies.
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The Fletcher Group