Customers of UK-based energy supplier OVO Energy will be the first to benefit from a new point-of-sale finance offering from HSBC.
OVO has partnered with HSBC to offer customers new financing options that help them to spread the cost of green technology products, such as solar panels and batteries, using ‘HSBC Flexipay’.
Payment options for heat pumps and electric vehicle chargers will soon follow, OVO confirmed.
OVO customers will be able to access HSBC Flexipay, regardless of whether they have an existing HSBC account, and they will not have to create one.
HSBC Flexipay will appear as a payment option at the online checkout, alongside paying by debit or credit card.
Andy Rankin, interim head of unsecured lending at HSBC UK, said: “Paying in instalments is increasingly popular and can be a great budgeting tool, providing the certainty of fixed repayments and a set end date.
“We are excited to start our journey in point-of-sale finance, offering customers a payment alternative which is fully regulated. For consumers looking to make a large purchase, HSBC Flexipay will enable them to do so with support from a responsible lender they can trust.”
Solar panels cost a typical home in the UK £9,000, on average, according to OVO.
Using HSBC Flexipay, OVO customers would see payments spread out to £236 per month over three years with interest-free credit.
A recent poll of 1,022 UK adults found that 74% are interested in installing green technology in their home, but 75% say that the initial expense to install is too much.
However, 69% would be more likely to install green technology if they could spread the cost over several months or years using a “trustworthy” lender.
Mark Robson, vice president commercial at OVO, said: “I’m excited to provide our customers with first access to HSBC’s flexible payment product – making home decarbonisation a reality for millions more households.
“By helping more people afford green technology, we will reduce energy costs in the longer term – and for good – while also helping to cut carbon.”
Rankin added: “The next five to 10 years will see a significant acceleration in investment that supports net zero, including people who want to make their home more energy efficient. That is why we are pleased to partner with OVO, offering their customers who are buying solar panels first access to HSBC FlexiPay.”
He confirmed that next year, HSBC will expand HSBC Flexipay further.
Further reading: American Express’ Pay with Bank Transfer unveils first utilities sector partner
