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Black Friday: This is how you buy outside of credit

In the run-up to the special sales days of November, there has been a tens of percent increase in demand for BNPL systems that allow credit at the point of sale, outside of bank credit.

Many Israeli fintech and credit companies have recently entered a field that allows them to buy without exceeding the existing framework.

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• Black Friday

• Black Friday

• Shopping

• Online shopping

• Online shopping

• online shopping

• Shopping

• Corona

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Sunday, 21 November 2021, 11:21 Updated: Monday, 22 November 2021, 09:01

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In the past year, more and more Israelis have used BNPL systems services - Buy Now Pay Later - which allow, among other things, to receive a loan for purchase at the time of purchase, without "grabbing" the credit line.

This field of credit, which operates with great success around the world, is relatively new in Israel, where most credit facilities are granted to a customer who is frequently in the "minus" by the bank, or at most by the credit card company.

Now, with the big shopping days of November, including Black Friday, the demand of companies, stores and retail chains for smart BNPL systems, designed to increase business turnover, is rising.

Tria, a fintech company that provides digital banking services, was among the first in the country to develop and deploy BNPL systems at hundreds of points of sale. When the buyer arrives at the checkout he gets an indication of whether it is possible to get credit for the products he buys a loan from the company.

If he chooses this option, he digitally enters general information and the system builds for him a customized route for obtaining the loan.

This way the purchase does not take up the credit line and the customer enjoys customized terms.

The company's business activity in the field of BNPL began in December 2020 (after three months of piloting) and has already gained about 300 businesses and organizations that use it.

Betria reports that the activity is growing and that the total credit currently given on loans, in less than a year from the moment the service began, stands at hundreds of millions.

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Shahaf Erlich, CEO of Tria (Photo: Eli Levy)

Vacations and appliances out of frame

"In the last year we have introduced the system that allows shoppers to get a loan for the products they buy, directly at the checkout - quickly and automatically," explained

. " When it comes to products that are considered more expensive like refrigerators, ovens, and other appliances.

"" Our solution has also enabled our partner companies, such as Elm, Power Warehouses, Beitili and more, to offer a wider range of quality products to a large audience. Financing options at the point of sale, such as the spread of credit card payments in accordance with a business policy, or credit card payments in credit are also lacking, "explains Erlich.

The payment transactions 'take up' the credit line, and the credit option is very expensive.

Therefore, the BNPL solution meets the needs of the Israeli consumer when it comes to making large purchases without burdening the card framework.

"The average credit line in the economy is NIS 12,000, and the finance industry estimates that in large purchases, such as electrical products, private medicine or vacations, consumers will prefer to pay outside the line," Ehrlich concludes.

The big purchases will not take up the fixed credit limit on the card (Photo: ShutterStock)

A change in consumer culture

A new venture between Blender and Bank Hapoalim will also allow for a wide spread of payments at points of sale and e-commerce sites.

Bank Hapoalim and Blender Financial Technologies (BLND @ TASE) recently announced the signing of an agreement to establish a joint company that will provide digital consumer credit to finance purchases at points of sale and e-commerce sites (e-commerce) in order to allow customers to receive credit, outside the bank's existing credit. At the time of purchasing the product or service at many points of sale and e-commerce sites.

The service may provide a solution for customers who want to make purchases in excess of NIS 1,000 and spread them out into 6-42 payments by standing order, so that customers can enjoy a long payment schedule and leave the credit line available for current consumption. Among the companies where the service can be obtained, you can find leading chains in the field of electronics, furniture, clinics, cosmetics salons and more.

"The partnership with Blender is an excellent example of the bank's connection with the fintech industry, we want to be the first choice of fintech companies in Israel." "

Blender joins a respectable list of fintech companies with which the bank builds collaborations. The bank strongly believes in the field of BNPL. We see today the real need in the market for digital financing solutions as part of the customer's buying experience."

Buy now, pay later: Blender.

(Photo: ShutterStock)

Buy now, pay later

This is another significant part of the BNPL (Buy Now Pay Later) revolution that Blender is leading in Israel.

Blender is an international fintech company that offers a variety of products in the field of digital consumer credit. BlenderPay allows a wide spread of payments outside the credit line with a spread of about 1,000 physical points of sale and e-commerce sites where the service is provided on the payment screen similar to PayPal and allows digital financing. .

field of BNPL (Buy Now Pay Later) found significant growth in the world with companies like Affirm ,, AfterPay Klarna and recently has been valued in the billions of dollars. This is a new financial future Blender brings to Israel, which is part of the digital revolution payments.

Black Friday: one of the biggest "shopping holidays" for consumers in the West (Photo: ShutterStock)

What is Black Friday?

BLACK FRIDAY, meaning "Black Friday" is one of the great shopping holidays of Western consumer culture.

This day, which is characterized by big discounts, symbolizes the last weekend for shopping before the gradual departure for the holidays leading up to Christmas.

In the United States, where Thanksgiving is celebrated, it symbolizes the transition between the holidays.

Many consumers who pre-purchase the gifts to go out for the Christmas holidays, tend to purchase them on this day that used to be characterized by long queues at the doorstep of department stores and toys.

In recent years there has been a gradual transition, greatly accelerated because of the corona, from in-store purchases to online purchases.

When does Black Friday apply?

This shopping day does not have a fixed date.

It will always take place on the fourth Friday of November, this year - on 26.11, that is - this coming Friday.

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