Tab: Flexible Product Financing

Slava Kurilyak
Slava Kurilyak

Tab allows consumers to buy now, pay over time. It is a checkout solution that offers installment or leasing plans to simplify consumer product purchasing, maintenance, and upgrades. Tab is the consumer's leasing partner for products.

Background

Death of ownership

Ownership is dead. Ownership is the equivalent of buying a license to a software product, installing it yourself and being forced to buy a new version of the software next year. Renting and borrowing killed ownership. Borrowing is the equivalent of creating an account with a software platform, adding your credit card to your account, and never worrying about upgrades.

Product leasing options

The economy is primarily run on credit. Some consumers use debit cards or mobile payments (WeChat Pay, Alipay) which withdraw funds directly from their personal banks. These payment methods are exceptions, not the norm. By far, most purchases are made with credit or loans.

Consumers have several financing options who wish to lease, rent or borrow. When a person wants to lease a product, a credit provider asks for ID, runs a credit check, and arranges a loan in the person's name. Apple, Google, and PayPal partner with third-party credit providers to deal with leasing. Apple partners with Citizens Bank (operates in U.S. only). Google partners with Assurant (operates in 27 countries across North America, Latin America, Europe and Asia-Pacific). PayPal partners with Synchrony Bank (operates in U.S. only) to offer PayPal Credit to eligible U.S. consumers (aka PayPal account owners).

Technological obsolescence

Amidst technological explosion, we are facing the fastest turnover. This turnover happens when technology goes absolute. All technology goes obsolete. As soon as consumers take a product off the shelf, they are using outdated technology. As soon as the software is not updating, the software become stale. Think of technology as hygiene. It is good hygiene to brush your teeth. It is good hygiene to keep your technology up-to-date. While consumers sometimes can upgrade their devices, this process is often manual done. Go to the store to buy the latest mobile phone. Go to the parking lot to buy the latest car. Consumers can use services to upgrade, trade-in, and trade-up their devices, cars and even jewelry. Upgrade programs are addressing the market trends of leasing.

Here are several examples of upgrade or trade-in programs: car companies (Porsche Drive), mobile companies (Apple iPhone Upgrade Program, Samsung Phone Upgrade Program), mobile carriers (AT&T Next Up, Sprint Early Upgrade, T-Mobile Jump, Verizon Annual iPhone Upgrade Program, Bell Trade-In Program, Virgin Trade-In Program), electronics (Best Buy Trade-In Program, Sonos Trade Up) and jewelry (Blue Nile Diamond Upgrade Program).

Ongoing maintenance

All technology requires maintenance. All technology requires consumers to constantly upgrade. All consumer products require software that fixes bugs and adds new releases. All consumers demand ongoing updates, in real-time, with minimal impact on their experience.

While there are device updates and protection plans for consumer products, they do not cover the breadth and diversity of consumer products.Let's look at Apple and Google. They offer screen repairs, replacements and accidental-damage coverage for select products. Apple offers AppleCare+ or AppleCare Protection Plans for Mac (Mac, Apple Display), iPad, iPhone, Apple Watch, Apple TV, Music (HomePod, Headphones, iPod). Google offers Google Preferred Care for mobile phones (Pixel 4a, Pixel 4 / Pixel 4 XL, Pixel 3a / Pixel 3a XL), laptops (Pixelbook, Pixelbook Go) and tablets (Pixel Slate).

Introducing Tab: Flexible Product Financing

Tab allows consumers to buy now, pay over time. It is a checkout solution which offers instalment or leasing plans to simplify consumer product purchasing, maintenance, and upgrades. Tab is consumer's leasing partner for products. It is a payment provider which partners with banking and insurance companies to ensure consumers are able to purchase devices using credit, make monthly payments and maintain their product over the long-term.

Buy Now, Pay Over Time

Consumers buy phones, laptops, tablets, and cars without worry about maintenance or upgrades. They make quick purchases using credit, line of credit, or loans. Consumers pay with Tab.

Tab Features

Software as a Service (SaaS)

Tab is a Software as a Service (SaaS) for product payments, maintenance and upgrades. Commerce merchants use this SaaS to offer flexible payments for consumer products.

Headless Commerce

Tab is a headless checkout solution for e-commerce which allows merchants to add leasing options to checkout workflows. Tab allows Merchants to focus on the front-end user experience without worrying about the backend or payment processing. As a headless commerce solution, Tab allows merchants to tie payment processing to their own front-end frameworks (Next.js, Gatsby.js, etc).

Credit Approval

When consumers buy products with a "Pay With Tab" button, processing payments are subject to credit approval.

#paywithtab

Tab Benefits

Flexible Financing

Tab allows consumers to pay monthly to rent or borrow products. Tab offers instalment plans and leasing options which allow consumers to make purchases without making down payments towards their purchase and pay on a monthly basis. Tab also offers a subsidy model which allows consumers pay an upfront price and pay for the rest of it over the course of a fixed term contract. Regardless of the payment preference, Tab offers flexible financing to consumers of legal age.

Maintenance Included

Tab allows consumers to never worry about maintenance. All Tab purchases have built-in protection or insurance allowing consumers to use products without stressing about dents, scratches or data.

Upgrades Included

Upgrades are a hassle. Keep technology up-to-date with Tab. Manually having to wait in line to get the latest iPhone should made as simple as possible. Consumers are notified of new upgrades. Tab allows consumers to trade in their products as easily as request a trade-in.

Backups Included

Consumers should press a button and have their device upgraded without worrying about backups. Consumers want their stuff backed-up. Backups are included, as part of Tab agreements, so that consumers never have to worry about loosing data. Backups are built-into the service.

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