As the popularity of buy now, pay later (BNPL) programs surges, traditional financial institutions like Citi are stepping up to capture a share of this lucrative market. Launched in fall 2023, Citi Pay offers installment loans and lines of credit at approximately 195 merchants, including well-known brands like LG and Pods. With sales increasing by 20% monthly, Citi is confident in its ability to secure a leading position in the BNPL space. The Consumer Financial Protection Bureau reported that the number of shoppers using BNPL has risen significantly, with heavy users averaging nearly ten transactions per month. However, the service poses risks for lower-income consumers who may struggle with debt. Citi aims to differentiate itself by leveraging its established brand and offering transparent payment options, including flexible installment plans. By focusing on customer experience and personalized marketing, Citi Pay is poised to reshape the BNPL landscape while addressing consumer needs.
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