By providing instant online credit to consumers, FuturePay is enabling them to have many of the benefits of carry a credit card without the prohibitive interest rates, the long wait time for credit or the fraud issues that online credit card payments face, Bobbi leach FuturePay CEO tells Mobile Marketing & Technology.
The company offers credit through its ecommerce merchant partners, who use “pay now” buttons or a similar feature on their site that enable approved consumers to complete online and mobile purchases when they may not have a credit card or may not want to use it.
The consumer completes a simple online account form, including name, address, date of birth and the last four numbers of his or her Social Security Number, and will receive a credit decision within 30 seconds, according to Leach. “We’re providing them with a different way to shop online or to shop via mobile. Consumers want choice in the way they pay for things. We are taking on the risk for the retailer.”
Customers pay $5 per $500 of unpaid principle every month in interest, much lower than the 18-21 percent rates of many of the popular credit cards, Leach says. As with credit cards, if the balance is paid before the due date, the consumer does not pay an interest charge. Most of the consumers using Future Pay carry a balance on their accounts, Leach says.
FuturePay sends out a notice as soon as a customer falls behind on payments to control delinquencies, a problem that has plagued credit card companies. However, Leach would not divulge any details about the rate of Future Pay delinquencies.