The year 2021 was an important one for Credi2. It was filled with some challenges but also with the achievement of milestones. The fintech set the course for the future by doubling its team, and expanding existing products such as cashpresso, FINANCE A BIKE and the subscription model for Apple products. A new year brings not only new goals but also trends.
A major shift has been taking place in the financial sector for years. Embedded finance and the need to be where the customer pays will become increasingly important in the future. For customers, the boundary between the purchase process and the application for consumer loans is blurring. By using the right digital tools, things like purchases on invoice, installments and consumer credit can be integrated directly into e-commerce apps and websites, offering consumers a choice of financing options without interrupting the shopping experience.
In the last 12 months, this trend has grown rapidly, however Credi2 knows this is just the beginning. By 2026, 24% of global e-commerce transactions are expected to be processed via BNPL, compared to 9% in 2021. The demand for flexible financing solutions will therefore continue to grow and Credi2 will keep its focus on offering them to banks and retailers as well as manufacturers via its own Banking-as-a-Service platform.
Credi2 has observed a very strong demand from consumers who would rather rent their products instead of purchasing them. Therefore Credi2 will continue to further expand the payment method of subscription models.
According to the latest study results from Credi2, almost half of all consumers between the ages of 18 and 34 already no longer care for product ownership. Instead, they prefer flexible subscription models with monthly payments that enable them to always be up to date both sustainably and technically.
It is above all the great flexibility of the subscription that attracts young adults. Thus, 70% of the respondents say that by using subscriptions they are financially more flexible and can quickly exchange the product at the end of the term. Since the products are recycled at the end of the rental period, customers have to pay relatively low monthly installments compared to buying the product.
Last year, the fintech published an extensive study that provided insights into consumer behaviour in relation to BNPL. This year, Credi2 will continue to present its expertise in the form of various publications. In addition to a whitepaper, there will be another study that will focus on banks and their BNPL needs.
In order to realise upcoming growth projects in 2022, Credi2 will continuously expand its teams and create many new positions. Clear and structured processes are crucial for Credi2 to ensure that the teamwork continues to function smoothly. The People & Strategy team will therefore devote special attention to corporate culture and team coordination this year. In 2022, Credi2 will continue its previous developments, strengthen its position in the growing BNPL market and expand into new geographical areas.