Fellow Finance expands into the buy-now-pay later market
Finnish peer-to-peer lender Fellow Finance has unveiled a buy-now-pay-later (BNPL) offering.
Its payment method, Fellow Lasku, gives consumers an option to make an online purchase with a 30-day interest-free invoice or in flexible monthly instalments.
The platform said the option is available on thousands of websites in Finland through the Visma Pay Online Payment Service.
Fellow Finance uses its data sources and machine-learning credit scoring models previously used for its P2P loans to assess and approve users wanting to use the buy-now-pay-later option.
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“It’s great to have Fellow’s new payment methods into markets before the online store high season,” Juho Putkonen, development manager of Fellow Finance.
“I strongly believe that we will be able to challenge current payment services with a better shopping experience and thus help merchants to enhance online conversions.”
BNPL is becoming a growing market for P2P lenders.
Zopa and Funding Circle have both expressed an interest in offering BNPL products.
Funding Circle launched its first payments facility, FlexiPay in September, to give businesses the flexibility to buy now pay later on any expense.
It is also working on a chargeback credit card that will have BNPL features.