Flote's Credit-Score-Agnostic Model: A Scalable Disruption in the U.S. BNPL Sector

The U.S. Buy Now, Pay Later (BNPL) market is undergoing a transformative phase, driven by evolving consumer needs and regulatory scrutiny. As the sector matures, traditional BNPL models-reliant on minimal or no credit checks-are facing criticism for fostering overuse and delinquency. Enter Flote, a product launched by Ovanti US Inc. (ASX: OVT), which redefines affordability assessment by leveraging income-based eligibility. This innovation, coupled with Ovanti's strategic leadership and merchant-centric benefits, positions the company to . BNPL market in 2025, while addressing systemic risks in the sector.

The Flawed Status Quo: BNPL's Growth and Risks

The BNPL market has grown at a staggering pace, with U.S. . However, this growth has come at a cost. Traditional BNPL providers often rely on limited credit checks or none at all, leading to high delinquency rates. For instance, , and . These trends have drawn regulatory attention, with highlighting the lack of consumer protections and the potential for systemic risk.

Flote's Income-Based Eligibility: A Paradigm Shift

Flote's core innovation lies in its , which replaces credit-score-centric underwriting with real-time income verification. By partnering with , Flote assesses a user's ability to repay based on verified cash flow, reducing the risk of overextension. This approach aligns with the needs of , . payments in 2024. Unlike traditional BNPL, which often excludes those with low or no credit scores, Flote's model democratizes access to flexible payment options while mitigating default risks.

Data from 's 2025 study underscores the growing adoption of real-time payment systems, with earned wage access and digital debit transactions driving momentum. Flote's integration into this ecosystem positions it to , particularly among younger, .

Merchant Benefits: Conversion, Risk Mitigation, and Growth

Merchants stand to gain significantly from Flote's model. By shifting credit risk to the BNPL provider, retailers-especially smaller ones-can avoid the default risks associated with traditional BNPL. Flote's fee structure, while higher than credit card processing, is offset by increased conversion rates and average ticket sizes. For example, during the 2024 holiday season, , . Flote's focus on debit-first households, a segment often underserved by existing BNPL providers, further expands the addressable market for merchants.

Leadership and Strategic Execution: Ovanti's Competitive Edge

Ovanti's leadership team brings a wealth of fintech and payments expertise. CEO , with 15 years of experience at ZIP Co and Capital One, has a proven track record in scaling BNPL platforms. SVP 's background at Block (Afterpay) and Atlassian ensures robust product development, while Barbara Badelt Ford's experience at Adyen and Nuvei strengthens commercial partnerships. The board's February 2025 approval of a U.S. market entry plan, targeting $500 million in transaction volumes and Southern states as a key growth region, reflects a data-driven, scalable strategy.

Market Potential and Shareholder Value

With the U.S. , Flote's differentiation is critical. By addressing the , the platform could reduce delinquency rates and attract regulatory favor. Ovanti's focus on non-retail verticals-such as healthcare and travel-also diversifies revenue streams. For shareholders, the company's $500 million transaction volume target and expansion into high-growth e-commerce segments position it to outperform peers like Affirm and Klarna, which face increasing competition from traditional financial institutions.

Conclusion: A Disruptive Force in a Fragmented Market

. With a leadership team adept at navigating regulatory and technological challenges, and a product that aligns with the financial realities of debit-first consumers, Ovanti is well-positioned to redefine affordability in the BNPL sector. As the U.S. market evolves toward more responsible lending practices, Flote's scalable solution offers a compelling value proposition for both consumers and merchants-making it a standout investment opportunity in 2025.