Stere Pay unveiled its buy now, pay later (BNPL) gateway for the insurance industry.
The initiative aims to address the upfront financial burden often faced by policyholders by enabling insurers and distribution partners to offer flexible financing options for premium payments, the FinTech company said in a Tuesday (Oct. 24) press release.
Stere Pay drew inspiration from payment models in various industries but tailored its BNPL gateway to meet the needs and financial models of the insurance sector, according to the release. It aims to build financial inclusivity and customer-centric services in the insurance industry.
By enabling deferred payments, the BNPL gateway eases the financial strain of lump-sum premium payments, making insurance coverage more accessible and customer-friendly, the release said.
The approach aligns with the evolving financial preferences of consumers, as the global economy witnesses a shift toward flexible payment solutions, per the release. The introduction of the BNPL gateway also supports the industry’s move toward digital transformation.
By prioritizing security, convenience and accessibility, Stere Pay aims to foster long-term relationships between insurers, distribution partners and policyholders, the release said.
PYMNTS Intelligence found that the rising popularity of BNPL options and credit card installment plans has been driven by consumers seeking payment options that are flexible and convenient.
Millennials and Generation X consumers are especially likely to be users of BNPL, according to “Tracking the Digital Payments Takeover: What BNPL Needs to Win Wider Adoption,” a PYMNTS and Amazon Web Services (AWS) collaboration.
The report also found that consumers who use BNPL are highly satisfied with their options, with three-quarters of BNPL users reporting being very or extremely satisfied.
Forty-three percent of current BNPL users plan to continue using it in the next year, while 15% of non-users plan to start using it, the study showed.
In another recent development in the BNPL space, Equipifi teamed with Jack Henry to offer a BNPL tool to community and regional financial institutions (FIs). Via the partnership, FIs can offer split payments through debit cards using Equipifi’s BNPL solution.
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