Financial technology is now a buzzword in the business market. Over the years, financial technology has evolved in significant ways by leading the transformation of companies towards a customer-centric business. The disruptive trend has utilized innovation, inventive cultures, access to data, and progressed analysis to change the financial ecosystem within the past decade. Katapult is one such eCommerce-focused financial technology company that serves nonprime consumers. Katapult partners with retailers like Wayfair and Lenovo to provide a lease-purchase solution so that nonprime consumers have the same buying power as prime consumers.

In an interview with Analytics Insight, Orlando Zayas, CEO of Katapult, explains how the company has impacted the eCommerce and fintech sectors for consumers and retailers.

A Journey to the Heart of Financial Inclusion

Katapult was founded with a core mission to provide financial inclusion. They believe people are more than their credit score, and the nonprime consumer deserves the same access to high-quality products as the prime consumer.

Since its inception in 2014, Katapult has strived to partner with quality retailers who align with its mission to bring more financial access to consumers that do not qualify for traditional financing. As a result, Katapult empowers retailers to reach an entirely new consumer base that conventional lenders and the BNPL space ignore, allowing them to increase transactions and create an inclusive customer experience that drives consumer loyalty.

A Distinguished Executive and Thought Leader

Orlando Zayas, CEO of Katapult, is a distinguished executive and thought leader in the fintech and eCommerce space. Orlando's thought leadership and visionary growth strategies are frequently featured in Business Insider, Bloomberg, Forbes, and many more publications. Orlando joined Katapult in 2017, playing a pivotal role in contributing to the growth of the company's revenue from $17M in 2017 to $247M in 2020. In addition, he recently led the company through its public debut in June.

Making a Soaring Impact on Consumer-Centric Services

Currently, 30% of the US population is considered nonprime consumers, which means they do not have access to traditional financing options. For example, if your refrigerator breaks, you need to replace it immediately because it is a necessity. However, a larger ticket item, like a refrigerator, requires financing options to pay overtime for many consumers. Suppose you do not qualify for traditional financing due to bad credit or no credit. In that case, you can apply for a lease-purchase option with Katapult and then choose from its quality retailers to shop, meaning you can replace your refrigerator right away and spread your lease payments over time. In addition, Katapult provides customized payment options that best fit your budget. Katapult's approach to treating consumers with respect and dignity has resulted in a return customer rate of over 40 percent.

For retailers, Katapult provides an easy solution to create more inclusive shopping experiences and reach more consumers. The nonprime consumer wants to shop and has money to spend; implementing payment options that cater to the nonprime consumer provides retailers with an easy revenue growth strategy. In addition, Katapultunderstands the nonprime consumer better than anyone and provides retailers with the tools and support needed to market to and communicate with this consumer base.

Innovation Through Strategic Partnerships

Katapult partnered with Affirm as a waterfall payment option, meaning when a consumer is declined for financing through Affirm, the application is automatically sent to Katapult for consideration. For retail partners, this provides another payment option at checkout, helping them service more customers and decrease the number of carts abandoned due to prime declines.

Talking about the impact of Fintech, Orlando says, "Today, Fintech is one of the most significant developing spaces, and the innovation in the market reaches new levels almost daily. For the retail and eCommerce space, our fintech solution increases a retailer's competitive edge, empowers consumers, and democratizes access to financial services."

A Glimpse at the Future Data-Driven Marketplace

From Orlando's perspective, Katapult will continue to focus on the underserved nonprime consumers. "There are many opportunities for new offerings, partnerships, and an expansion of access to the growing number of online and omnichannel retail activities," says Orlando.  "Consumers are showing their willingness to adopt these new technologies and their preference for new ways to interact and pay, but they want great experiences, trusted partners, and transparency." In summary, this creates significant opportunities for merchants relying on traditional programs to embrace the digital and data-driven approach and grow their marketplace.

"There is a massive market opportunity that continues to expand with the adoption of digital transaction types. From an industry standpoint, there is a rising wave of focus and adoption of e-commerce, POS financing, and digital servicing strategies that are garnering more attention," concludes Orlando

Impressive Recognition and Accolades

• Katapult was named as one of the Best Fintech Startups in NYC to watch in 2021
• Katapult has achieved a 4.4-star rating out of 5 stars on TrustPilot with over 15K reviews.
• Katapult became a publicly-traded company in June of 2021.