A New Alternative to Costly Credit Cards with Fintech Bread

a woman conveniently pays her bills via financial technology services

At fintechinvestmentreviews.com we know that when consumers buy items online, the most commonly used method of payment is for consumers to reach for their bank-issued credit card. If the consumer buys something with a bigger price tag online, they may choose to put it onto their credit card and pay the larger amount off over time. Fintechinvestmentreviews.com reports that Bread, an alternative to using a credit card, has raised $128 million in new funding to expand their operations.

Bread´s aim is to get consumers to stop using their costly credit cards and replace them with something with a lower interest rate. Credit card repayments can also be unpredictable, making the situation worse for credit card users.

Bread´s investment came from a series B funding round and with the cash injection, Bread aims to get more and more retailers using their system of borrowing. One of Bread´s main aims is to provide more funding options for retailers who want to provide different funding options for their customers. The reason why people want to invest in this technology is quite simple: if consumers have the opportunity to pay money over time, they are more likely to make bigger purchases.

Big competition from PayPal credit and others

We have noticed at fintechinvestmentreviews.com that other companies are moving to offer similar services to retailers. PayPal, Affirm, and Klarna are trying to offer similar finance on more expensive items online.

Bread´s main advantage is that they are trying to offer a much more tailored solution for retailers, allowing retailers to choose the interest rates and the repayment period. Bread aims to work more closely with retailers than their competitors.

Bread wants retailers to use their own branding to offer their loan systems in an attempt to oust the credit cards offered by stores like Macy´s and Tiffany´s. A goal of using the retailer´s brand is to build brand loyalty by offering finance options better than credit card rates, with more flexible repayment options.

What are the options for retailers?

Retailers can choose their repayment parameters. They can set their interest between 0% and 29.99% and choose how long they want the repayments to last, from 3 months to 48 months.