In the aftermath of market regulation, finding merchant services to suit your business is increasingly important for alternative lenders, including payday lenders.
The High Cost Short Term Credit (HCSTC) market has undergone major change in the last two years which has impacted on the structure of the market and brought to light some ongoing challenges. Since the Financial Conduct Authority’s (FCA) price cap in January 2015 there has been contraction and consolidation in the sector, with almost 40% of companies exiting the payday loans market. At the same time we have seen an increase in demand for alternative credit products.
There are now typically four recognised categories within the market:-
• Door step loans
• Payday loans
• Instalment loans
• Logbook loans
Alternative lenders continue to face an array of challenges, such as:
• further regulation
• challenger banks
• pressure on margins
Therefore, it is important to find merchant services that are right for you as a payday lender or provider of instalment loans, door step loans or logbook loans.
At Axcess, we provide merchant services that are tailored to the specific needs of your business. Having worked with alternative lenders for over a decade, we know the features needed to provide a secure payment platform that enables your business to grow.
• Dedicated technical support
• Tokenised card payments
• Multiple acquirers for resilience
• Integration with leading loan management software systems, offering end to end loan processing management.
It is anticipated that the High Cost Short Term Credit market will continue to evolve and alternative lenders and loan providers will need to adopt flexible business models to react to competitive threats and customer demands.
If you would like to talk to us about merchant services and merchant accounts that are tailored to the needs of payday and alternative lenders, please get in touch.