How Catch Is Empowering Users To Spend and Gain Loyalty Without Racking Up Debt — Retail Bum

The rapid proliferation of buy now, pay later (BNPL) as a payment method has undoubtedly democratized access to credit and provided an appealing way to manage expenses and access various benefits.

At a time of record high inflation and continued economic uncertainties, BNPL is aiding consumers in acquiring items they’d otherwise save for — a benefit that is also upping average order values and benefiting brands.

However, easy access to BNPL has also brought a complex web of potential pitfalls to light. Easy, interest-free installments tend to make items seem more affordable to consumers, often leading to overspending and accumulation of concealed debt due to the absence of immediate interest.

That is a problem payments startup Catch is aiming to resolve by leveraging debit, low-value transactions, and loyalty to deter debt accumulation.

In an interview with Retail Bum, co-founders of Catch, Nico Perdomo and Denia Ebersole, who previously worked at Affirm and Google, delved into how their strategy is resulting in more transparency and spending empowerment.

“We see the sweet spot for us is typically probably between $50 and $250,” said Perdomo, adding that the company observes an average…