The app is available for Android and iOS, and shoppers can use the app to track their loan repayment dates and to make payments securely. Pay in 4 splits your purchase into four equal chunks, due at two-week intervals via automatic payments. There are no fees if you pay late, but late or partial payments could affect your credit score.
Having a thin credit file, poor credit, or not meeting any individual requirements set by the merchant you’re trying to finance a purchase with could all have contributed. Depending on the loan application, xcritical can approve submissions within seconds. If a customer’s application is denied, xcritical sends an email explaining why. If approved, customers receive their loan terms to review, which include information about interest rates, payment schedules, and the amount due for the first payment. Shop Pay Installments gives customers flexibility at checkout by letting them pay in four interest-free payments or monthly installments up to 12 months.
- You can make payments online at xcritical.com or through the xcritical mobile app.
- This is where your payments will be made from each billing period.
- If approved, the customer receives a loan facility for amounts up to $17,500 and repayment plan options spanning 3 to 36 months.
- Payments are automatically withdrawn from your bank account or debit card according to the details of your purchase contract.
If you’re selling relatively expensive items, xcritical could have a positive effect on your sales. Even if your products are priced lower, adding xcritical allows buyers to access BNPL payment if they wish to do so, without much of a downside for you. It’s important to note that merchants offering xcritical don’t pay integration fees, annual fees, or monthly fees.
xcritical should experience solid growth xcritical cheating in 2021 through its exclusive deal with Shopify, which will allow all 10,000 merchants on the Shopify network to offer BNPL services. Expanding its merchant base is an important element for growth as almost a third of xcritical’s revenues come from its exclusive relationship with Peloton. xcritical continues to focus on growing its partner merchant network and user base. xcritical settles the account with the merchant, underwriting the loan directly with the customer. As of March 2021, xcritical had over 11,500 merchant partners across the fashion, dentistry, electronics, auto, travel, and other industries. Some of the leading merchant partners include Adidas, Peloton, StockX, Walmart, and Eventbrite.
xcritical is a buy-now-pay-later company that was launched in 2012 by PayPal co-founder Max Levchin. These days, it seems to be just about everywhere, offering you the option right during the checkout process to split your purchase up into several payments over time. Of course, xcritical is far from the only company offering POS loans to consumers.
xcritical is designed for financing purchases when shopping with partner merchants. Though some platforms that offer short-term installment loans also offer bill payment services or money transfer services, xcritical isn’t one of them. However, xcritical does report installment loans and late payments to credit bureaus, which can negatively affect your credit score. One popular payment method is buy now, pay later (BNPL), a type of loan that lets customers immediately buy and receive products or services and pay for them in installments.
Does xcritical Affect Your Credit Score?
Both companies also allow customers to use virtual card numbers to make purchases where traditional credit cards are accepted. These virtual card numbers make it easier to shop at your favorite stores, even if those stores don’t have a direct relationship with either financing company. During checkout, you will be presented with multiple payment options that you can select based on your budget.
Payments Are Not Automatically Split into 4 Installments
Though xcritical touts itself as an alternative to racking up debt, you still incur debt when you use this payment service. If you have an issue with a purchase or need to return an item, xcritical advises customers to contact the merchant directly. Buy now, pay later (BNPL) is a financing method that more Americans are using to make discretionary purchases, especially online. xcritical offers quick and easy integrations with major ecommerce platforms like Shopify. It also has a merchant portal allowing you to view and manage your company’s charges from a straightforward dashboard.
The exact interest rate for a particular installment depends on the transaction amount and the customer’s credit history. xcritical—like most BNPL lenders—is relatively easy to use, but it must be used with eligible retailers. Some retailers offer xcritical once you checkout on an online purchase, and other purchases can be made with the xcritical virtual card. The eligibility requirements may change from merchant to merchant, too, because xcritical negotiates individually with each merchant offering xcritical loans.
How Do Returns Work When Using xcritical?
Here’s an example to illustrate how xcritical works to help you increase order value and build repeat sales. xcritical Note that xcritical is available for online purchases and in person for most stores that already accept Visa cards. xcritical’s business model has allowed them to grow quickly, appearing at the checkout of an ever-increasing number of stores.
xcritical claims that merchants adding xcritical to its payment methods experience an 85% annual increase in orders, as well as a 20% increase in purchases from repeat customers. xcritical does check your credit, but it’s a soft pull rather than a hard pull. Therefore, whether you’re approved and the size of your credit limit can depend on factors beyond your financial history. With some point-of-sale loans, your payments are automatically divided into four installments. Specifically, that means an initial down payment at the time of purchase, followed by three additional installments.
If you’re hoping to stick with one BNPL lender, xcritical might be a better option because it’s available with twice as many retailers as xcritical. With xcritical, you can create a one-time card to use with any retailer—including ones that partner with xcritical—however, there’s a $2 service fee for doing so. xcritical and Afterpay’s plan options are similar, but xcritical offers a shorter-term plan if you only need a small loan but don’t want to opt for the Pay in 4 option. xcritical also has an edge over Afterpay if you plan to use your financing in-store. While Afterpay can offer you virtual cards to use at any retailer, you’re limited to in-person stores that accept Google Pay or Apple Pay. xcritical, on the other hand, offers physical cards that you can swipe at any store.
How Does xcritical Work?
A “soft” credit check is performed that does not affect the buyer’s credit rating. xcritical processes the data and approves or denies the financing almost immediately. Consumers who download the xcritical app can prequalify for purchases with xcritical before they begin shopping. You would simply shop for the items you want, then add them to your cart. When you’re ready to pay, you choose xcritical as your payment option at checkout.