Barclays US Consumer Bank has partnered with Amount, a leading technology provider for financial institutions, to become one of the first major U.S. banks to offer point-of-sale (POS) financing installment options. Barclays will also be one the first providers to offer merchants the option of a POS payment under the merchant’s own brand, which presents a unique opportunity for them to deepen connections with their customers.
With increased consumer demand for versatile payment options and booming e-commerce leading to a 200% growth in buy now, pay later (BNPL), Barclays is well positioned to strengthen its presence at the point-of-sale. Barclays brings decades of experience in marketing, analytics, underwriting and risk management, in addition to brand presence, a strong balance sheet and a global merchant portfolio to the BNPL marketplace.
“Nearly one-third of U.S. consumers have already used a buy now, pay later service, and the demand is expected to continue to grow as consumers become more comfortable with the transparency and ease of use of flexible payment options,” said Denny Nealon, CEO of Barclays U.S. Consumer Bank. “The time is right to enter the U.S. market and give consumers customized, loyalty-driven transparent POS installment loan programs at some of the country’s most successful travel, entertainment, retail and affinity institutions.”
Barclays’ partner-centric approach focuses on providing leading merchant brands with innovative banking and payment solutions that help drive sales and build loyalty with their consumers.
“Our new banking solution is built off of our promise to provide services that match our consumers’ lifestyles and purchasing habits to create and reward loyalty rather than merely providing a new transactional revenue channel,” said Mr. Nealon. “Barclays presents an opportunity to drive more customer loyalty and intimacy with the brand that will help them drive sales. We’re excited to extend our presence in the BNPL marketplace alongside Amount, a developer that has the technology and knowledge to provide consumers and merchants with a mutually beneficial purchasing process.”
Barclays’ U.S. offering will be powered by Amount’s digital financial services platform for POS financing, underpinned by core platform features including fraud prevention, verification and account management. Barclays is partnering with Amount given the company’s proven technology, ease and speed of integration, and deep knowledge of digital financial services. The platform is expected to go live with merchants later this year.
“There have been seismic changes across the payments landscape with consumers embracing and expecting seamless digital experiences. The rise of mobile and online shopping combined with an increase in digital adoption was quickly accelerated by the global pandemic,” said Adam Hughes, CEO of Amount. “This has created an environment in which POS is the next battleground in consumer financing, wherein banks are well positioned to compete given their stability and cost-of-capital advantages. We share a similar consumer-centric approach to execution, and we’re honored that Barclays chose to partner with Amount.”
Barclays U.S. Consumer Bank, in partnership with Barclays Principal Investments, participated in Amount’s Series C equity financing round, where Amount raised a total of $86M to further accelerate R&D and M&A strategies on the platform. “We see a fundamental change and acceleration in the way POS technology is being delivered to end consumers, as well as banks and other infrastructure partners,” said Kester Keating, Head of U.S. Principal Investments at Barclays. “Amount is at the forefront of this change, and we’re delighted to support the company with an equity investment.”
