Canopy Servicing Announces Referral Partnership with Marqeta to Power Configurable BNPL Solutions

By combining Canopy’s modern loan management and servicing platform with Marqeta’s modern card issuing platform, the two companies are making configurable installment programs more accessible to banks, credit unions, and enterprise Fintechs.

SAN FRANCISCO--(BUSINESS WIRE)--Canopy Servicing, the most configurable platform for loan management and servicing, today announced a referral partnership with Marqeta, the global modern card issuing platform, to empower banks, credit unions, and enterprise Fintechs to offer next-generation installment and lending products with configurable BNPL solutions.

Configurable installment products, such as Buy Now Pay Later payments, are increasingly popular with borrowers seeking clear and transparent repayment terms. Buy Now Pay Later payments, also known as BNPL, are expected to make up 24% of all physical goods purchases by 2026 and reach $995 billion globally, according to Juniper Research.¹ Unlike traditional installment products, which were largely the same, configurable products can be tailored to an individual borrower’s needs.

“The rapid growth of BNPL revealed consumer dissatisfaction with the traditional credit and lending products, as well as the constraints of legacy servicing infrastructure,” said Canopy CEO Matt Bivons. “Next-gen installment, credit and lending products require the flexibility of modern loan management and servicing infrastructure and the scalability and control of modern card issuing.”

While some of the first BNPL providers popularized BNPL for e-commerce transactions, companies like BHG Financial have made BNPL a viable option for big ticket items through its NaluPay product offering. In addition, card issuers are increasingly offering convertible payments; that is, they are offering borrowers the option of converting an item bought with a revolving line of credit into an installment loan. This type of flexibility is one of the advantages of a modern loan management and servicing platform. These kinds of line-item policies increase affordability by lowering the cost of credit for consumers and for businesses.

Marqeta powers global money movement and created modern card issuing. “Configurable installments will continue to make up a substantial portion of lending products in the future, as consumers increasingly seek out more flexible forms of payments,” said Jazz Samra, VP of Global Partnerships, Marqeta. “Thanks to our referral partnership with Canopy, we are unlocking opportunities for banks, credit unions, and other card program providers to offer the innovative BNPL products their borrowers increasingly demand. We look forward to working with Canopy to serve customers in this market.”

To learn more about the Canopy Servicing loan management and servicing platform, visit www.canopyservicing.com.

Here's another interesting article on Top Trends 2022 – Financial Technology

About Canopy Servicing

Canopy is a modern platform for managing and servicing loans. Our API-first architecture ensures any brand can embed financial products, bring those products to market quickly, and support those products with world-class service in a highly secure and compliant way.

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1 https://www.businesswire.com/news/home/20210613005001/en/Juniper-Research-Buy-Now-Pay-Later-Spend-to-Reach-995-Billion-Globally-in-2026-Despite-Increasing-Regulation

Contacts

Media:
Dan Desmond
media@canopyservicing.com

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