December 13, 2018

What Happens When 1,500+ Startups Enable Frictionless Access to Credit


Removing restrictions does create markets, but more often than not, there is little to no consideration of the potential damage that frictionless access to markets and funds may cause – for consumers, in particular. While numerous studies have demonstrated that simple access to funds does not necessarily always result in long-term qualitative prosperity for those previously excluded from the formal financial system, the startup ecosystem keeps on pushing the rhetoric of enabling even easier and more frictionless access to funds for a variety of purposes. The matter goes far beyond financial inclusion and into simplifying the business of lending for conspicuous consumption. In fact, the rise of POS financing led to a 32% increase in sales for companies that enabled online POS financing. Moreover, the companies that offer POS financing experience an average increase in “order value” of 75%. For consumers, the convenience with POS financing comes at its unique…

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