HSBC UK, a leading provider of banking and financial services, has announced the launch of Flexipay, a point-of-sale (POS) finance product aimed at entering the growing buy now, pay later (BNPL) market in the United Kingdom.
With the rising popularity of instalment-based payment solutions, HSBC aims to provide a flexible, responsible, and fully regulated alternative for customers seeking to spread the cost of large purchases, according to Finextra.
The new point-of-sale financing solution, allows consumers to pay for purchases in instalments.
Designed to be accessible, the product offers a seamless application process and swift decision-making during checkout.
Consumers can manage their repayment plans through the HSBC UK banking app, enabling overpayments and early settlements with ease.
To launch the product, HSBC UK is collaborating with Ovo, an energy company, as its first merchant partner. Ovo customers will initially use Flexipay to spread the cost of solar panel purchases. Additional merchant partnerships are expected to roll out in 2024.
Flexipay is available to UK consumers, regardless of their existing relationship with HSBC. This approach aligns with the bank’s goal of widening accessibility and supporting responsible lending.
HSBC UK interim head of unsecured lending Andy Rankin said, “Paying in instalments is increasingly popular and can be a great budgeting tool, providing the certainty of fixed repayments and a set end date.
“We are excited to start our journey in Point of Sale finance, offering customers a payment alternative which is fully regulated. For consumers looking to make a large purchase, HSBC Flexipay will enable them to do so with support from a responsible lender they can trust.”
Mark Robson, VP, commercial, Ovo, added, “Our customers tell us the biggest barrier to making their home more energy efficient is the upfront cost. We’re on a mission to change that.
“I’m excited to provide our customers with first access to HSBC’s flexible payment product – making home decarbonisation a reality for millions more households.”
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