Banks and fintechs working with Galileo, the fintech behind Galileo Buy Now Pay Later, can make secure and seamless instalment purchases using Mastercard Installments. The partnership with the payment provider gives Galileo customers 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 per cent) 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.
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 customise the total number of installment payments for purchase-based financing.
Combining forces to create better access to credit
“Our successful launch of Galileo Buy Now, Pay Later provides fintechs and financial institutions with a solution to offer their consumers flexible payment options. Galileo has recognised the growing need to provide the same level of choice and transparency for B2B lenders. Especially those 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.”
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.
Mastercard Installments brings immediate acceptance so that small businesses can access their installment loan through a digital virtual card for critical purchases and investments. They can do so both in store and online. This provides access to capital improvements, repairs, or inventory.
Expanding options for SMBs
Millions of Mastercard merchants of all sizes accept these payments 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. Especially as this supports the critical segment with credit options and payment flexibility through qualified lenders. Furthermore, it offers them peace of mind to pay back their loans over time, freeing them up to focus on what matters: scaling and optimising their operations.”