Ally Financial launches point of sale lending for retail purchases

Point of sale terminal
(Image credit: POSaBit)

Ally Financial has announced a new point of sale lending service aimed at helping consumers finance large retail purchases. 

With the new service, the bank will offer consumers loans ranging from $500 to $40,000, with repayment periods as short as six months or as long as 60 months. 

The service is launching in partnership with Mastercard’s Vyze, a point-of-sale platform that connects consumers to lenders during the checkout process. The announcement comes less than a year after Ally acquired Health Credit Services, which offers point of sale lending for healthcare providers.

The new partnership stands to benefit both Ally and Mastercard, who will together, "give merchants who want to offer consumers trusted and stable installment loan options a powerful, digital option," said Hans Zandhuis, chief of Ally Lending.

POS lending

With the move into point of sale lending, Ally is betting that financing retail purchases is the best way to reach young consumers. With Ally’s acquisition of Health Credit Services, the bank largely abandoned an earlier foray into offering credit cards.

Millennials have reported that getting approved for credit cards can be difficult, but that they still want the ability to defer payments on purchases. Meanwhile, 70% of retail consumers in a Business Insider survey noted that installment payments make large purchases less stressful. 

Ally stands to benefit from the new service by charging interest rates ranging from 9.99% to 26.99%. The company also hopes that by offering financing options, small businesses using Vyze to process payments will see an increase in retail sales.

Michael Graw

Michael Graw is a freelance journalist and photographer based in Bellingham, Washington. His interests span a wide range from business technology to finance to creative media, with a focus on new technology and emerging trends. Michael's work has been published in TechRadar, Tom's Guide, Business Insider, Fast Company, Salon, and Harvard Business Review. 

Latest in Software & Services
A man sitting at his desk in the evening and using a desktop computer
Office 2021 vs Office 2024: is it time to upgrade?
Microsoft 365 Business app logos
Office 2024 LTSC vs Microsoft 365 Business: what are the differences?
Windows 11 Start menu layout choices: Grid view
Windows 11 vs Linux for business: which operating system should you embrace?
A phone sitting on a laptop keyboard with the Microsoft Outlook logo on the screen.
Gmail vs Outlook for business: which email system is right for your organization?
Windows 11 logo
Windows 11 Pro vs Windows 11 Home: which version is right for you?
Canva HubSpot
HubSpot and Canva team up to level the creative playing field
Latest in News
Google Gemini Flash 2.0 Images
I tried Gemini's new AI image generation tool - here are 5 ways to get the best art from Google's Flash 2.0
An image of the Samsung Galaxy S25 Ultra from a hands-on event
Samsung Galaxy S26 Ultra could resurrect an intriguing camera feature
Eurocom Raptor X18
At $15,000, this massive 256GB RAM laptop makes Apple's MacBook Pro look affordable, tiny and very, very slow
Cristin Milioti in Black Mirror season 7
Netflix launches trailer for Black Mirror season 7, giving us a look at its first-ever sequel episode and an unexpected returning character
A graphic of the PC Gaming Show
Get ready for a bounty of PC games on June 8, as the PC Gaming show is back
A close up of The Daily podcast from Pocket Casts' web page
‘Podcasting shouldn’t be locked behind walled gardens’: Pocket Casts slams Spotify and makes its web player free to all