Lending Facilitation

How Paynetics Adds Value

Digital payment rails for connecting borrwers and lenders in a scalable way

Introduction

Paynetics has developed an attractive offer for the lending to both consumers and corporates on the basis of its end-to-end payments capability and a mobile banking proposition. We provide the payment rails for both disbursement and collection of loans. We supply wealth of transaction data, allowing improved underwriting. Our products can be utilized through the available APIs and also through our white label digital payment app. Our virtual cards issuance brings consumer lending and BNPL to the digital age and allows scalable cross-border operations.

Versatile

API connectivity / White label solution / On-the-fly virtual cards

Regulatory cover

License allows scalable Cross-Border lending

Transformative

Increase client loyalty and generate additional revenues

A partnership-led approach

to consumer lending

Paynetics enables its partners to provide a superior product to their end clients. As an end-to-end payment service provider, we seek to fully understand your value proposition and enhance your customer’s experience with our payment solutions.

We offer our credit as a service product to a wide array of players in the space:

Fintechs and owners of e-wallets – To them we provide our payment rails and regulatory infrastructure, which is designed to allow our partners to extend loans to their consumer clients across borders. Proven in practice, the lending product increases engagement, generates traffic, grows the customer base and provides a valuable additional source of revenue.
Consumer lending companies – To them we offer a white-label of our lending-first mobile banking app. The award winning app provides a superior user experience, which increases conversion and allows significant cross and upselling. Through the app, lenders remain close to their consumers and monitor their activity, improving sales and risk management. The superb UX is complemented with connected payments services, including payment cards and bank accounts, streamlining flows, cutting operational expenses and ultimately creating a defendable competitive advantage.

BNPL players – To them we offer a unique virtual card proposition allowing them to really scale up the business. No need for additional integration with retailers.
SaaS providers – For them we offer an easy to implement lending flow. Being able to provide working capital to their corporate clients strengthens our partners’ competitive position, increases stickiness and builds a new revenue stream.
PSPs – For our PSP partners, we have built a merchant cash advance product (MCA). The possibility to offer working capital to merchants is a great competitive advantage and a differentiation factor in a very competitive environment. No need to race to the bottom with the price for acquiring, provide additional value to your merchants, grow the customer base and generate additional revenue. We arrange for the funding, our PSP partners generate origination fees.

Onboarding and

risk management

Our API platform ensures a quick on-boarding and efficient data exchange between systems for Paynetics and our partners. In addition to the fully digital onboarding process, it also covers compliance, risk analysis and monitoring. Our automated KYC process speeds up onboarding, resulting in lower drop-off rate during this stage of the costumer journey ultimately contributing to higher conversion rates.

The wealth of payments data we generate, provides unique insights into the purchase patterns and financial behaviour of the consumers, which strengthens and complements the traditional scoring models. Based on this new holistic approach to evaluating the creditworthiness of clients, our partners are able to set different limits and controls, customized hierarchy, multiple products, different pricing levels. We have adopted the latest security standards, ensuring high level of reliability and reducing fraud related costs.

Regulatory

Framework

As an e-money institution, passported across the EU, we are able to offer lending products across borders without the need for country-by-country licensing. This allows our partners with Pan-European strategy to expand and scale up much faster. Even if lending is not the core product of our partner, they can very quickly start with a POC, test the adoption and performance and quickly scale up after that.

A new way of communicating

with clients

Once the program is up and running our partners benefit from an uninterrupted access to data, enhancing operational excellence and allowing them to have attractive propositions to their end clients. The data empowers our partners to better understand the needs of their clients and modify and supplement their product offering accordingly.

Moving the credit proposition to a fully-fledged mobile banking app enriches the customer engagement and allows lenders to have a more meaningful dialogue with the client.

Rather than waiting for the consumer to get in touch with them or spending a lot on marketing campaigns, they are now able to offer proactively tailor-made suggestions to the client when and where they need the extra funding. Apart from substantially improving upselling, this approach creates a new type of relationship between the consumer and the lender, which is based on better understanding, more frequent communication, deeper loyalty and more frequent interaction.