Curve, the “over-the-top” banking platform that lets you consolidate all your bank cards into a single Curve card and app, is quietly testing its planned “Karna rival”.
Dubbed “Curve Credit”, the new feature is being tested with a small number of customers before a full launch later this year. It offers credit on purchases made through your Curve Card, which is to be paid back in installments. The idea is meant to offer an alternative to other types of consumer loans and competes with point-of-sale sales finance companies such as Karlana in the long term.
However, unlike the choice of Karlana, Curve does not require merchants to support Curve Credit as an alternative to direct checkout payments. Instead, Curve users only pay with their Curve debit card to use the feature, although direct merchant participation may allow for additional perks, such as merchants paying interest-free for a set period.
In practice, Curve’s patent-pending “Go Back in Time” technology enabled new Curve Credit functionality, which allows you to reverse the underlying bank account / card used to make payments. For example, instead of switching recent transactions from your current account to your credit card, for example, it is re-routed to Curve Credit, where you will receive a repayment plan and any one you take. Interest will also be charged.
During the trial period, Curve Credit is borrowing from its own balance sheet, offering so-called “debtor-creditor-supplier loans” at 0% interest installments as part of the staggered roll out . A full launch is expected later this year when full FCA authorization is granted. However, the vision for Curve Credit is also to eventually open up the facility to other credit providers and banks as part of the market offering in other markets. When a Curve user divides a transaction into installments, they will be able to choose Curve Credit as a lender or may choose another lender / issuer integrated into the platform.
The head of Curve Credit, Paul Harald, is a former founding team member of SAV Credit (now called New Day). Most recently, Harald was at CreditAge, a Chinese venture capital firm, where he founded the U.K. And undertook European private equity investment. He has also worked as an executive director at RBS and has been a credit and risk advisor at Google, with experience in fintech and financial experience.
Meanwhile, Curve Credit is the latest example of how Curve’s self-described “OTT banking platform” offers truly innovative functionality. Zooming further, there is further evidence of the company’s ambition to bring the user’s financial control center to attention.
As I have written before, while starting the company in 2015, Shachar Bialik, the founder and CEO of Bette Curve, created that whenever there was a disruption – in this case, after technological and regulatory changes, an abundance of new fintech companies The banking sector is opening up various segments – this inevitably leads to fragmentation. Then in the end what happens is convergence. Curve, like other fintechs, is trying to fill that void with a platform that re-bundles various financial products but in a way keeps the consumer under control.
At its most underdeveloped, Curve provides a single view of your card spending and is completely agnostic about where your money is stored. However, this single view and data brings it together, together with the curve card and app, and more interesting things are possible.
This includes instant expense notifications, cheaper FX fees than your bank typically spends in foreign currency, peer-to-peer payments from any linked bank account, and the ability to switch payment sources retrograde In form. We can now add point-of-sale finance to the list, but in a way that is uniquely agnostic with respect to both the merchant and the lender.
Furthermore, because Curve has a clearer picture of a user’s transaction history than a single bank account or credit card, Fintech is able to raise traditional credit scores with its own data. This means that it should be able to tailor its new credit offering to individual customers and, argues Bialick and team, to lend it more responsibly by introducing more competition within the consumer credit market. make capable.