Railsbank launches white-label BNPL for retailers to compete with Klarna

By Daniel Lanyon on Thursday 13 January 2022

Alternative LendingDigital Banking

Retailers using Railsbank’s BNPL product will be able to offer their customers credit services directly, without needing to route via a third-party provider.

Railsbank launches white-label BNPL for retailers to compete with Klarna
Image source: Louisa Murray/Railsbank

Railsbank is launching a new white-label ‘buy now, pay later’ solution for retailers in the UK and Germany.

The product, which Railsbank says will be ready “in 2022” will allow retailers to offer their customers credit services directly, without needing to route via a third-party provider like Klarna.

BNPL has boomed in recent years, becoming one of the most valuable areas of fintech. Companies such as Klarna, Afterpay and Zilch have seen their valuations soar owing to the rapid adoption of it as means of financing e-commerce by consumers.

“We want to remove distractions and allow retailers to maximise engagement with their customers. We believe this is a unique offering in the UK and one that will be very popular to a number of different retail verticals including fashion, homeware, travel and sports,” said Louisa Murray, COO of Railsbank, UK and Europe. 

Railsbank says customers of the brands using the products can access BNPL credit options without seeing a standalone BNPL provider’s brand. This means the brands can strengthen their customer relationships, and leverage their existing customer loyalty, rather than “lending their brand equity” to a third-party lender.

“Customers are increasingly reaping the benefit of checkout financing to help them repay over time. This is supported by digital BNPL providers. But, many of them are building consumer brands in their own right,” Murray said. 

“They’re incentivised to draw customers away to their own platforms, diluting a retailer’s own purchase journeys and brand loyalty. Customers would rather deal directly with their preferred, trusted brands, rather than being routed to a third-party finance provider,” she added.

Railsbank was founded in London (HQ) in 2016 and operates throughout the UK and Europe, APAC and the US. 

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Companies in this Article:

Klarna
Railsbank
Zilch
Afterpay