Ally expands into retail point-of-sale lending

Ally Financial will begin offering retail point-of-sale loans as part of a new partnership between its personal lending business and Mastercard’s Vyze unit.

The $ 184 billion asset Ally said in a press release Tuesday that it would offer consumer installment loans on Vyze’s platform for a variety of retail goods and services, including the home improvement, exercise equipment and consumer gadgets. Ally’s installment loans will range from $ 500 to $ 40,000, with an interest rate between 9.99% and 26.99%.

“Mastercard’s deep experience in global payments and technology positions Vyze as a leader in the point-of-sale lending market,” Hans Zandhuis, director of Ally Lending, said in the statement. “Together, our partnership provides merchants who want to provide consumers with reliable and stable installment loan options, a powerful digital option. “

Based in Austin, Texas, Vyze connects merchants with lenders to provide point-of-sale installment loans, betting like many others that younger consumers will prefer these loans over credit cards. MasterCard acquired Vyze Last year.

Point of sale ready has taken off in recent years in part because the technology needed to provide these loans has become much more accessible to small traders and entrepreneurs. It’s also proven popular with younger consumers, who don’t have their home equity to tap into or who prefer fixed monthly payments to the unpredictability of a credit card.

Ally launched the point-of-sale loan last year when he purchased Health Credit Services, an unsecured personal lender specializing in financing medical procedures. He then renamed Health Credit Services to Ally Lending.

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