Barclays Taps Amount Over End-To-End Digital Banking Solutions

Barclays PLC's BCS U.S. Consumer Bank, a co-branded credit card issuer and financial services partner that specializes in highly customized loyalty programs, has teamed up with Amount, a leading provider of technology for creating and enhancing digital consumer experiences.

What Happened: The COVID-19 coronavirus pandemic accelerated the digital disruption in finance. More and more, merchants and consumers are becoming habituated to digital banking.

In light of increased consumer demand for versatile payment options like buy now, pay later (BNPL), Barclays partnered with Amount to become one of the first major U.S. banks to offer point-of-sale (POS) financing installment options. As part of the development, Barclays will also offer merchants the option of POS payments under their own brand.

Barclays U.S. Consumer Bank CEO Denny Nealon, a 17-year veteran at the firm, discussed with Benzinga the importance of finding ways to drive sales and loyalty for partner brands like American Airlines Group Inc AAL, JetBlue Airways Corporation JBLU, the NFL, among others.

“We had our first conversations about three years ago,” Nealon said in a discussion on Barclay’s longstanding relationship with Amount, a solution for institutions looking to digitize and streamline banking experiences. “We looked at what’s the best way for us to get to market, and do so in a way that will really help drive our partners’ businesses forward. We came to the conclusion that while we could build this capability, there were fintechs out there, that this was their bailiwick.”

The idea, to put it simply, was to launch a better, end-to-end buy now, pay later platform, at a fraction of the cost.

“If we can marry all the things that we bring to the table with our relationships — loyalty focus, our credit, strong balance sheet — and marry that with a truly modern, nimble, best-in-class platform, it’s a win-win.”

Why It Matters: Barclays is committed to driving loyalty and engagement for its partners’ brands, in a changing, digital-focused payments landscape.

Amount CEO Adam Hughes notes: “Banks really should be winning these types of opportunities because they have the brand and customer base, balance sheet, and this cost of capital advantage, which should ultimately drive the most competitive rates in the market.”

“We have an opportunity, working with Amount, to take our existing products, and add a really critical and fast-growing product. We can provide a full-stack set of products that help address merchant and customer needs.”

Innovation Outlook: Barclays and Amount are committed to staying ahead of the digital disruption.

In expressing its commitment, Barclays U.S. Consumer Bank, in partnership with Barclays Principal Investments, participated in Amount’s Series C equity financing round, where Amount raised $86 million to accelerate growth initiatives.

“We love the idea of partnering with fintechs, to deliver great technology and really modern experiences,” Nealon said. “We’re not afraid to partner with leading fintech platforms like Amount.”

Going forward, given the synergies present, the partners will work to allow more merchants a holistic, buy now, pay later experience.

“We’ve seen interest increase dramatically as a result of COVID, over the last 12 months,” Hughes said. “These are the early innings and I think there’s going to be much more innovation.”

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