Help improve credit card profitability with embedded payment insurance
TruStage™ Payment Guard Insurance helps credit card lenders grow revenue from new sources, gain a competitive advantage and reduce risk of mitigation. Learn how our embedded loan payment insurance is designed to help you differentiate your products in an increasingly competitive landscape.
Help improve resiliency and better serve customers with Payment Guard
As consumer lending evolves in the digital age, embedded payment insurance offers credit card lenders a tool to create more resilient loan products, better serve their customers and potentially reshape the perception of short-term lending products.
Payment Guard is designed to positively impact your business’ bottom line by improving repayment rates while reducing charge-offs. When looking at an assumed cost for credit card charge-offs to various scenarios where loan payment insurance is implemented, we found that lenders saved more than $14 million in charge-off costs related to covered job losses and disability over five years.¹
Payment Guard is designed to help credit card lenders¹:
Increase revenue
For every avoided delinquency or default, lenders can recognize the interest income that would be forgone when borrowers can’t make their payments.
Differentiate offerings
Most consumers see loans as a commodity product, differentiated only by the interest rate they receive. Lenders can offer an attractive differentiated loan product by embedding loan payment insurance.
Reduced risk
Some credit cards serve borrowers with limited credit history or lower credit scores. Payment insurance can help mitigate the higher default risk associated with this lending segment.
Regulatory compliance
As regulatory scrutiny of credit cards increases, offering built-in borrower protections may help demonstrate responsible lending practices.
Improve customer acquisition
Embedding loan payment insurance could attract new customers, reduce abandonment within online lending channels and contribute to retention for lenders. Without the need to increase ad spend, attracting more borrowers with embedded loan payment insurance will help decrease customer acquisition costs.
Why Payment Guard?
Many lenders could achieve a 16% reduction in charge-off costs with embedded cash advance payment protection¹
A credit card lender could save roughly $14M in charge-off costs related to job losses and disability over five years.¹
One pay-over-time Payment Guard customer saw a 194% improvement in conversion over one month through promoting Payment Guard to prospective borrowers.¹
Get your estimate today
Payment Guard has been shown to help reduce both acquisition cost and default rate. Learn how Payment Guard could help offset the premium cost with net savings for your portfolio.