US fintech Upgrade, which was founded by former LendingClub boss Renaud Laplanche, is planning to launch a buy now, pay later (BNPL) product.
In 2006, Laplanche (pictured) co-founded US peer-to-peer lending platform LendingClub, but he left in 2016 amidst corporate governance issues and alleged loan irregularities.
LendingClub subsequently closed to retail investment last year ahead of completing its acquisition of digital lender Radius Bancorp in February.
Then in 2016 Laplanche co-founded Upgrade, which offers payment cards along with personal lines of credit.
The fintech’s chief executive told CNBC that in the coming months it plans to introduce a BNPL-style product that lets users pay off their debt in four months, without accruing any interest.
“We are working on a version of the Upgrade Card that’s better suited for smaller expenses,” Laplanche told CNBC.
“In that case, we don’t need to charge interest because it’s a smaller amount…
“What we like about embedding the product into a card is the broader acceptance. BNPL often relies on partnerships with merchants.
“It’s starting to get mainstream online. But not so much in-store.”