Citizens Financial Group in Providence, Rhode Island, has expanded its point-of-sale lending partnership with Microsoft.
The $187 billion-asset company said Monday that it is now offering no-interest loans on the spot for a wide range of Microsoft products, including Windows 11 PCs and Surface tablets, through its Citizens Pay platform. The company first established a point-of-sale financing relationship with Microsoft in October 2019 for its Xbox All Access program. Effective immediately, Microsoft customers can use Citizens Pay for any hardware, accessories or subscription services purchased through Microsoft's online store.
Citizens rebranded its point-of-sale lending platform as Citizens Pay early this year. Citizens Pay gives consumers the option to pay for a purchase over a series of fixed monthly payments through a virtual line of credit, which can be reused without another credit application. Citizens Pay offers consumers 12- and 18-month installment terms.
“Citizens has a long history of working closely with leading brands to offer the best and most innovative financial experience, and this expansion brings alternative financing to Microsoft Store and its millions of customers,” Andrew Rostami, president of Citizens Pay, said in a press release.
Banks and fintech firms alike have waded into point-of-sale lending in recent years, driven in large part by technology that allows lenders to make loans much more quickly and cheaply. Additionally, many younger consumers tend to prefer fixed monthly payments over credit card payments.
Citizens has point-of-sale relationships with a number of other big-name retailers, including Apple, Peloton and the home security providers ADT and Vivint. While Citizens does not charge the end consumer interest on its point-of-sale loans, it does receive fee income from the retailers using its platform.
