How Katapult is Giving Brands Access to Otherwise-Forgotten Customers, with CEO Orlando Zayas

There are certain things many of us take for granted, including making purchases on our credit cards. It might surprise you to learn that 40% of the population is actually considered non-prime. This means they have either been turned down for a credit card, have bad credit or have no credit at all. These people are often denied the ability to make purchases, particularly on large goods, like appliances or furniture. But what if they could be given the opportunity to make those purchases? What if they were given the chance to make payments based on their own ability on their own schedule? That would not only open up a new customer pool for brands, but it would provide a way for a large group of people to build credit in a meaningful way. 

Katapult is making all of that possible and on this episode of Up Next in Commerce, I spoke to Katapult’s CEO, Orlando Zayas= about how it all works. We talked about the difference between buy-now-pay-later and lease-to-own. We got into how new financing options lead to more incremental sales for brands. And we also dove into how to build a highly-functioning team and the challenges of going public. Enjoy this episode!

Main Takeaways:

• Finding Missing Persons: When someone can’t get credit, or if they’ve been denied a credit card, they become non-prime consumers. This makes it much more difficult to purchase goods, particularly online. These customers eventually disappear, creating a void but also an opportunity to find them and bring them back into the fold. By giving these potential consumers additional avenues to make purchases, brands are adding more to their bottom line.
• Consumer Control: By putting the control in the hands of the consumer, you allow them to get to ownership sooner rather than later. And when consumers are able to get to ownership with something they thought was out of reach, they are more likely to return and buy again.
• Hire The Right People: You need a team that can act fast and independently, especially if you are a high-growth company. It’s imperative that your team can pivot fast and not get rattled when the company is going through a shift — like going public. If there are people on your team who aren’t working up to snuff, it’s better to cut them loose fast, rather than hang on to them hoping they’ll turn things around.

For an in-depth look at this episode, check out the full transcript below. Quotes have been edited for clarity and length.

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For a full transcript of this interview, click here.