SALT LAKE CITY, October 5, 2023 – Galileo Financial Technologies, LLC, a leading financial technology company owned and operated independently by SoFi Technologies, Inc. (NASDAQ: SOFI), announced today that its Galileo Buy Now, Pay Later (BNPL) offering is now available for lenders to offer it as a service for their small business clients (SMBs).1 In partnership with Mastercard, banks and fintechs working with Galileo can seamlessly and securely offer installment financing options to small businesses via Mastercard Installments, providing them with 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%) 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 (Mastercard, 2022).
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 customize the total number of installment payments for purchase-based financing. 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.
“Following our successful launch of Galileo Buy Now, Pay Later, which provides fintechs and financial institutions with a solution to offer their consumers flexible payment options, Galileo recognized the growing need to provide the same level of choice and transparency for B2B lenders whose small business customers need better access to credit,” said David Feuer, Chief Product Officer at Galileo.
Mastercard Installments brings immediate acceptance so that small businesses can access their installment loan through a digital virtual card for critical purchases and investments–both in-store and online–such as capital improvements, repairs, or inventory. Millions of Mastercard merchants of all sizes accept these payments today 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.
For more information about driving profitable growth through Galileo Buy Now, Pay Later for businesses, visit www.galileo-ft.com/products/credit-and-lending/.
1Programs with over four installments or whose customers are incorporated entities may be subject to additional lending regulations and consumer protections, including Regulation Z and state lending laws.
Is SoFi’s Galileo the Future of Embedded Finance?
The embedded finance sector is experiencing unprecedented growth, projected to continue growing at a compound annual growth rate (CAGR) of 16.8% through 2029. Leading the charge is Galileo, the B2B financial services arm of SoFi Technologies.
Debit Rewards Surge as Consumers Shift Spending Preferences
Debit rewards programs, which were significantly reduced by as much as 50% immediately after the Durbin Amendment capped fees on debit card payments, are now seeing new life. This comeback is fueled by the continued rise of debit as a preferred spending method.
Galileo Transforms SoFi Into the Backbone of Embedded Finance
Galileo, the B2B financial services arm of SoFi Technologies, Inc. SOFI, is emerging as a key engine of growth in the rapidly expanding embedded finance market. By offering seamless payment and lending integrations, Galileo enables financial and non-financial firms to embed banking capabilities directly into their platforms.
Virtual Cards Are Gaining Ground. Here’s What Banks Must Do Next
This shift highlights growing comfort with digital-first payments. But while usage is climbing, many banks and financial institutions still struggle to explain why virtual cards matter and how consumers can benefit from them.
One-Tap Payment Switch Gives Banks the Edge in Account Primacy
Prashant Shah, VP of product management at Galileo Financial Technologies, challenged the PYMNTS audience to remember a recent bill paying experience where updating a subscription meant having to chase down Netflix or Amazon — even the local power company — to log into each individual site to update payment details.