Help improve your buy now pay later lending with embedded payment insurance
TruStage™ Payment Guard Insurance helps buy now, pay later (BNPL) lenders improve repayment rates, reduce charge-offs and help lenders remain competitive. Learn how our embedded loan payment insurance could add value to you and your clients in our new report.
Help improve resiliency and better serve customers with Payment Guard
As consumer lending evolves in the digital age, embedded payment insurance offers BNPL lenders a tool to help create more resilient loan products, better serve their customers and potentially reshape the perception of short-term lending products
Payment Guard is designed to positively impact your business’ bottom line by improving repayment rates while reducing charge-offs. When looking at an assumed cost for BNPL charge-offs to various scenarios where loan payment insurance is implemented, we found that lenders saved more than $4 million in charge-off costs related to covered job losses and disability over five years.¹
Payment Guard is designed to help buy now, pay later lenders¹:
Reduce defaults
Ensuring that all borrowers with covered job loss may be able to continue to make loan payments, often for up to six months, helps to reduce the number of loans that end up in charge-off status, helping lenders create a more resilient loan portfolio.
Increase revenue
For every avoided delinquency or default, lenders could recognize the interest income that would be forgone when borrowers can’t make their payments.
Improve customer acquisition
Embedding loan payment insurance can help attract new customers, reduce abandonment within online lending channels and help contribute to retention for lenders. Without the need to increase ad spend, attracting more borrowers with embedded loan payment insurance will help decrease customer acquisition costs.
Differentiate offerings
Most consumers see loans as a commodity product, differentiated only by the interest rate they receive. Lenders could offer an attractive differentiated loan product by embedding loan payment insurance.
Enhance secondary market appeal
For lenders who sell loans, embedded payment insurance could help make their products more attractive to investors.
Why Payment Guard?
Many lenders could achieve a 16% reduction in charge-off costs with embedded cash advance payment protection¹
A buy now pay later lender could save roughly $4M in charge-off costs related to job losses and disability over five years.¹
One pay-over-time Payment Guard customer saw a 194% improvement in conversion over one month through promoting Payment Guard to prospective borrowers.¹
Get your estimate today
Payment Guard has been shown to help reduce both acquisition cost and default rate. Learn how Payment Guard could offset the premium cost with net savings for your portfolio.