Payments provider Curve has struck a $1bn deal with Swiss financial service Credit Suisse for the development of the latter’s Buy Now, Pay Later (BNPL) offering Flex.
The fintech firm confirmed the deal after Credit Suisse would fund Flex’s first $1bn BNPL loans for its latest offering, looking to challenge several key players in the sector such as Klarna and Monzo.
The all-in-one card payments service is intending to make a big play within the sector with target growth areas within Europe, the UK and the US, with “ambitious plans” to enhance the market of consumer lending.
Flex will offer consumers a typical BNPL instalment-based payment gateway, providing split transactions for six, nine and 12 month monthly payments.
“We have launched and very successfully tested our unique Curve Flex product, and are delighted to be able to scale our lending capabilities with this new financing,” commented Paul Harrald, Global Investment and Consumer Lending Chief at Curve.
Curve are not alone in launching its own BNPL offering as many fintech firms look to take advantage of a sector that has been blossoming over the past several years, despite a challenging year for BNPL firms with fresh warnings from regulators and a dip in funding for some of its major players.
Revolut most recently launched its BNPL offering last June with its ‘Pay Later’ feature in multiple European jurisdictions, with major banking firms such as Virgin Money also entering the BNPL space in recent months.
Despite consistent interest and the influx of new competitors in the market, BNPL firms have been receiving more regular warnings over how they advertise their payment offerings which has come to the Financial Conduct Authority’s (FCA) attention.
The UK regulator warned BNPL firms , which are still largely unregulated, that providers “must comply with the financial promotion rules” or risk committing a criminal offence if not authorised by the FCA.