Adding an Old Banking Feature to the Credit Card: The Case for Installment Lending

American Express got it right the first time.

Fintech firms like Affirm and Goldman Sachs’ Marcus address a weak spot in credit card lending. Top issuers are going head-to-head to displace point-of-sale installment lending with a new credit card feature, bringing value to cardholders with an option for accelerated payment terms. This is a defensive play to protect an issuer’s portfolio from attrition.