As retailers begin to reopen stores, a new payment partnership aims to make installment plans more accessible for consumers.
Payments platform Quadpay will now use the infrastructure of Stripe Issuing to make its service available to all consumers with the Quadpay app, at any retailer that accepts Visa.
Unlike competitors in the space that operate only through merchant partners, Quadpay aims to serve customers shopping in all types of stores, both online and brick-and-mortar. The Quadpay app issues users a virtual card, which allows them to access the “buy now, pay later” solution through Google Pay or Apple Wallet, regardless of whether a merchant is partnered with them or not. All merchants receive the full value of the sale upfront; Quadpay assumes the risk.
Merchants that do choose to partner with Quadpay are able to build the payment function directly into their e-commerce channels and promote the budgeting tool on their pages. This can boost conversion rates by more than 20% and order value rates by up to 60%, according to Quadpay. Partners are also highlighted in the app in the form of a store directory, exposing them to a larger consumer base.
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“With Stripe, we’re making it easier for brands to access more consumers,” said Brad Lindenberg, CEO of QuadPay. “And for consumers, the beauty of it is that it doesn’t matter where you shop — at any brand, online or offline — QuadPay gives you the flexibility to spend how you want.”
Quadpay is one of the first companies to utilize Stripe Issuing, a service by financial solution Stripe that enables any U.S. business to instantly issue cards directly from their Stripe Dashboard. The new program also accelerates the integration time for merchants who sign up with Quadpay, as only the mobile app is needed to get started.
“Ugg is one of our partners and they have 100 stores,” said Lindenberg. “We were able to roll out in all their stores in a matter of days because it doesn’t require any point of sale integration.”
Consumers who sign up with Quadpay undergo an instant soft-credit check and are then approved for a $500 balance. This is made immediately available for use in the mobile app. The limit is raised as consumers complete their installment payments, much like a credit card limit. Lindenberg claimed the company has the highest approval rate in the market and said their average consumer is between 22 and 35 years old, and skews female.
The partnership with Stripe also gives Quadpay access to its other support services, including Stripe Radar, which prevents fraud and manages risk at a granular level.