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Buy Now Pay Later service from «PIE CREDIT»

    Background

«PIE CREDIT» is a relatively new player in the Ukrainian market. The company set itself the task of completely redesigning the Buy Now Pay Later model, already popular in the Ukrainian market, and providing its customers with a completely new experience in this area.

More details about the company can be found at the link: https://pie-credit.com/

Buy Now Pay Later service from «PIE CREDIT». This is a financial instrument that offers customers a convenient installment plan without overpayments, and for brands, it is a proven way to increase sales and attract new customers.

In Ukraine, the Buy Now Pay Later model is now experiencing a real boom. Even in the crisis year of 2020, BNPL payment services have seriously improved their financial performance. In total, there are dozens of companies in the world that provide services for paying for goods in installments on the terms of either the complete absence of commissions and interest or with a small interest rate that is more profitable than bank lending.

 

Payment in installments from the Ukrainian service "PIE CREDIT" involves providing customers with a simplified installment plan for a period of 1 to 12 months without interest and hidden fees, as well as a convenient interface for setting up and administering.

 

You can use the service in partner stores right at the time of placing an order. The order amount is divided into several equal parts. The store receives the entire amount in advance from «PIE CREDIT» and immediately sends the order to the buyer.

To start the service, the partner only needs:

    1. Register for «PIE CREDIT» and generate a link to the product, specifying the parameters of the product and the price in advance;

    2. Place a generated link to a product or a QR code on your page.

For the purchase of goods in installments, the client only has to:

    1. Follow the link and select installment terms;

    2. Fill out the form and sign the contract

All subsequent processes in the form of analysis of the borrower, payments and accounting - the system takes over.

 

In addition to the absence of additional commissions for buyers, this service is convenient because verification and solvency check in it takes place in a matter of minutes and does not affect the credit history. For express scoring, Big Data and machine learning technologies are used, so even for customers without a credit history, installment plans are approved in 90% of cases. Another advantage of this approach is that AI algorithms will prevent buyers from spending more than they are able to pay. A «PIE CREDIT» user does not need to open a line of credit (which is what credit cards are) and service this debt for one-time or occasional purchases. PIE CREDIT approves each time a limited amount is needed to pay for a specific purchase. As soon as the buyer pays all payments, the loan is closed.

This approach allows partners to sell goods in installments without any restrictions. Now you can sell on credit through social networks, instant messengers or one-page sites. Everything is simple and efficient.

 

    Сhallenge

Having received a request from «PIE CREDIT», we immediately set about implementing the project, as this is an interesting experience and an opportunity to prove ourselves in this area.

We were given the following tasks:

    1. The software solution should provide opportunities for small companies that sell on FB & Instagram platforms.

    2. The CRM system should be a website that provides interaction between customers who want to issue a loan agreement, and a credit company that provides the execution of this loan agreement. This system should provide the following features:

        a. Possibility of application by the client

        b. Processing applications from the credit company

        c. Accounting for loan applications and their administration

        d. Generation of a link to a loan agreement upon successful loan application

    3. Decision-making system is a system that provides automatic decision-making on a preliminary analysis of a loan agreement, before the final conclusion. This system is based on models using machine learning. This system must follow the following characteristics:

        a. At the entrance to receive an application for a loan, with the provided data about the client and the loan agreement itself.

        b. The decision-making system is based on machine learning models trained on a labeled database of loan agreement histories.

        c. Machine learning models should be components whose use depends on the input conditions and which can be replaced.

        d. The data received as input to the models must be standardized.

        e. The output is a risk group, which is a reduced result of models to logical and interpretable groups.

    4. Payment system - is a system that ensures the final acceptance of the loan agreement, which includes monetary transactions between the credit company and the client. This system should provide the following features:

        a. Receipt by the client of the amount of money in accordance with the loan agreement.

        b. Carrying out monetary transactions in accordance with legal regulations.

        c. User verification

    Result

The Compassway team fulfilled all the obligations it had undertaken, which resulted in a full-fledged competitive product on the Ukrainian market.

We believe that we coped with the task perfectly and the result speaks for itself.