Putting customers in control
We’re working on a range of new ways to pay that are designed to help shoppers with some of the millions of online purchases that are made every day. We want to give access to flexible instalment plans at checkout and enable people to spread payments over a longer period to help them manage their money. As a fully regulated provider, we will apply the same affordability checks as we do on other lending, giving reassurance to both customers and merchants that we will only lend what people can afford.
We’ll partner with trusted merchants that offer goods and services where it makes sense to spread payments. And we’ll enable customers to see all their instalment plans in one place through a dedicated mobile app, putting them in control and letting them flex and manage their instalment plans and make one simple monthly payment. We’re also working with established consumer finance provider New Day, using their market leading payments technology to ensure a smooth and seamless experience.
We’ll start small – working with a small number of merchants first before rolling out and giving customers even more choice at checkout, either exclusively or as an alternative option to other checkout payment providers.
We fully support increased regulation of the BNPL market, and would like to see a clearer definition of “credit”, so that credit products with similar features and risks are regulated equally, and customers are afforded the same level of protection no matter how they pay or who they choose to pay with.
Driving our strategic transformation
Instalment plans are set to play a key role in Lloyds Banking Group’s ongoing strategic transformation and our future plans are ambitious. 2025 and beyond will see this kind of embedded finance become a key part of Lloyds Banking Group’s consumer lending product offering, working with a broad range of carefully chosen merchants in order for us to show up at the end of millions of online purchase journeys, helping our customers with their budgeting by offering new choice and flexibility, and helping shoppers buy in a new way that suits them best.
In this way, we’re in an unrivalled position to take the deep understanding we have of our customers’ needs and spending habits and pair this with strategic partnerships and revolutionary tech, to reimagine credit at the online point of sale.