Nilson Report

Issue 1185 | Oct 2020

FEATURED COMPANIES

Companies featured in this issue include:

Payment Cards in the U.S. Projected Purchase Volume in 2024

U.S. Payment Cards—Purchase Volume

U.S. Payment Cards—Purchase Transactions

U.S. Payment Cards—Purchase Volume 2019 vs. 2024

U.S. Payment Cards—Total Volume

U.S. Payment Cards—Total Transactions

U.S. Payment Cards—Outstandings

U.S. Payment Cards—Cardholders

U.S. Payment Cards—Cards

U.S. Payment Cards—Purchase Transactions

Consumer and commercial general purpose and private label credit, debit, and prepaid cards are featured in this issue. Purchase transactions are listed for all brands and products. The totals are shown here.

Credit Card Totals
52.23 Billion projected in 2024
Debit Card Totals
116.93 Billion projected in 2024
Credit and Debit Totals
169.16 Billion projected in 2024

Full access to the Payment Cards—Purchase Transactions results in the United States is available when you subscribe to the Nilson Report.

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POSTED OCT 31, 2020 | PRINT

White Label Buy Now, Pay Later from Jifiti

Jifiti provides lenders and merchants technology to offer consumers a buy now, pay later (BNPL) financing option at checkout. 

The white label platform handles the entire BNPL purchase. Jifiti facilitates consumer loan applications at the point of sale (online or in-store), transmits that information to the lender for approval, provides the consumer with terms for the loan, and issues a virtual card on one of the global networks for the consumer to complete the purchase. 

Jifiti also establishes that the purchase was made within the scope of the lender’s loan terms. Unlike most competitors in the BNPL market, Jifiti is not a lender and does not finance purchases.

Jifiti says virtual cards eliminate the need for technological integration—via app, website, or merchant POS terminal—typically associated with BNPL purchases. The company began in 2012 as a platform provider of private label prepaid cards for merchants. Jifiti continues to provide private label prepaid cards. 

The company’s BNPL service is its growth engine. Jifiti is active in the U.S. and Europe, with plans to expand its business in Africa and South America. 

Jifiti has a partnership with Mastercard. The majority of Jifiti’s virtual card issuance utilizes the Mastercard network. The companies also have a business development agreement. Mastercard refers merchant and issuer clients to Jifiti. 

Jifiti primarily markets its BNPL platform to banks. Those banks in turn offer it to merchants on a white label basis featuring the brand of the bank or the merchant. Lender clients include Citizens Bank in the U.S., Credit Agricole in France, Caixabank in Spain and Portugal, Buy Way in Belgium, and Hitachi in the U.K. 

Lenders assume the risk associated with the merchant as well as the consumer. They avoid small merchants in favor of medium to large merchants that generate $5 million in BNPL loan volume annually. The average loan on the Jifiti platform is around $1,200.

Jifiti says BNPL lending from banks has an advantage because the cost of capital for banks is cheaper than for fintechs that must raise funds for loans from capital markets.

Large merchants have also partnered with Jifiti. Ikea works with the company in eight countries. Massmart in South Africa, which is 50% owned by Walmart, is also a customer.

In the U.S., Bancorp is the BIN sponsor for virtual cards that operate on the Jifiti platform. In Europe, the company is a principal member of the Mastercard network. 

Jifiti’s revenue comes from a percentage of the interchange paid by the merchant in the U.S. In Europe, where interchange fees are capped, banks pay basis points on every loan the company facilitates. 

INTERVIEWED FOR THIS ARTICLE

Yaacov Martin is CEO at Jifiti in Tel Aviv, Israel, yaacov@jifiti.com, www.jifiti.com.



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