POS is playing an important role in the online payment industry. POS helps the merchants to operate their business smoothly. The system offers a lending program that allows the customers to purchase products on loan. However, Ally Financial that is a bank holding company in Michigan is steeping into the POS installment lending program. Ally Financial has partnered with MasterCard so that they can effectively do the business in this particular sphere.
POS Instalment Lending Program
Well, the POS installment lending program is also known as POS financing where the merchants offer a financial solution to the customers at the point of purchase. POS financing assists the customers in such a way so that they can buy whatever they want. POS financing refers to closed-loop store cards, installment loans, and open-loop credit cards.
Point of Sale loan is not a new thing. But, it was not so popular in the past. With the advancement of technology, the popularity of Point of Sale financing is increased. POS financing has enabled the installment loan option. Now, people can buy any fancy things such as phones, large furniture and many more without facing any problem.
Ally Financial announced on Tuesday that they have made a long-term partnership with the MasterCard. Actually, they will be working with the POS installment loan platform of MasterCard. It is called Vyze. Ally Financial will play the role of the financier.
Standing in the 21st century, it is very important to start using advanced payment equipment. Fortunately, the merchants have been doing this rightly. Now, Ally Financial has got this point very well. The company wants to catch the new trend to elevate their business to the next level. According to the research, businesses having a POS system have got almost 35% boost in overall sales. The result is realty remarkable and this is why Ally Financial wants to take this to a different level.
Ally Financial will offer various financing options to customers who are making big purchases. The purchasing amount must be anywhere between $500 and $40,000. The customers will get up to 60 months of terms and the interest rate will be between 9.99% and 26.99%.
MasterCard has stepped into the POS installment lending program in 2019 after buying Vyze. Vyze is a fintech company. As of now, Ally Financial has not mentioned anything about how it will bring changes to the business. However, considering the present situation, it can be said that it is a very good move from Ally Financing.