Bread's credit sales get a boost from installment loans

Bread Financial is seeing a significant lift in business thanks to its 'Bread Pay' installment loan products. While traditional credit card usage faces headwinds, point-of-sale (POS) financing is becoming a primary engine for sales growth. For retailers, this shift signals that customers are increasingly moving away from high-interest revolving credit in favor of structured, predictable payment plans. Bread’s latest earnings show that even as the economy shifts, consumers are still willing to spend if they have access to fixed-rate installment options at the checkout counter. This news is a clear indicator for merchants that offering a variety of financing tools is no longer optional. Bread Pay’s integration into diverse retail environments suggests that 'Buy Now, Pay Later' (BNPL) and similar installment loans are stabilizing the retail sector. Operators should note that these loans are driving higher average order values and helping close sales that might otherwise be abandoned due to credit card fatigue. If your current financing mix relies solely on a private-label credit card, you may be missing out on the volume currently shifting toward installment lending providers like Bread.

Source: American Banker — Top News

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