ExtraMile by KnowledgeNile is delighted to bring an all-new set of expert-led interviews to discuss the emerging technologies, innovations, strategies, practices, and more. Let’s start 2026 with great enthusiasm and explore technological advancements in a better way.
For today’s exclusive conversation, we are super excited to host Derek Medlin, the President and Chief Growth Officer of the leading lease-to-own (LTO) platform, Katapult. The firm is known for integrating omni-channel retailers and e-commerce platforms, enabling consumers to make flexible purchases and leases. Katapult is committed to improving financing by offering leases with clear, transparent terms.
Our guest, Derek, sheds light on his commendable professional journey in the finance and tech sectors, alongside giving interesting takeaways on his role at Katapult. He then explains how Katapult’s point-of-sale payment system is transforming traditional methods. Apart from that, transparent lease-to-own, AI integration in customer behavior analysis, assessing ROI, etc., are the major takeaways from this conversation.
Let’s get started and hear from the expert, Derek Medlin!
You are a seasoned professional with significant contributions to the finance and tech sectors. Walk us through the key moments of your journey.
Derek. I have spent more than two decades working across financial services, payments, and commerce, building and operating platforms that support real-world sales environments.
Throughout my career, I have focused on helping merchants expand their businesses by unlocking new growth opportunities. I have long been interested in the intersection of payment platforms, cutting edge technology, and operational efficiencies and what can happen when they are all working in tandem. These three elements are critical to the success of omnichannel and e-commerce companies, but they are often at the bottom of a long list of priorities. That perspective shaped my decision to join Katapult in 2017, when the company was still early in its growth journey. I was excited by the opportunity to transform a novel lease-to-own payment platform into a growth partner for merchants, especially for a very underserved segment.
Since joining Katapult, the focus has been on scaling responsibly by strengthening merchant integrations, expanding product capabilities, and building the operational rigor required to support consistent growth. As the company matured into a public organization, that operational discipline became even more important, raising the bar on reliability, transparency, and execution that we needed to provide to our merchant partners. That work has enabled Katapult to give a growing list of merchants access to new customer cohorts through a low-lift technology investment and a cost efficient, automated channel.
At the same time, these strategies have helped ensure we are an essential financial resource to a growing base of U.S. consumers, allowing them to acquire the essential goods they need, when they need them. All the while, treating customers with transparency, dignity and respect, so they come back again and again.
If I look back, my early experiences in strategy and capital markets roles at firms like Ernst & Young, and later in my senior leadership positions at Elavon and JP Morgan laid the foundation for my deep understanding of the complexities behind how merchants adopt new payment technologies and where friction can derail adoption if solutions are not built with operational realities in mind. Ultimately if we cannot deliver for both the merchant and the consumer, the offer will be short-lived.
Across each phase of my career, the common thread has been practical innovation, using technology to expand access, improve conversion, and make complex payment decisions easier at the point of sale.
You joined Katapult in 2017 as the COO, and now you are the President and Chief Growth Officer of the firm. How have your responsibilities changed with the role?
Derek. As COO, my role was centered on operations and efficiencies, building the systems, teams, and processes that allowed Katapult to scale while maintaining performance for merchants and customers. That included overseeing operations, product execution, technology integrations, and lifecycle planning to ensure the platform could support growing demand without adding friction.
As President and Chief Growth Officer, my responsibilities now extend beyond operational readiness to driving growth across the entire merchant ecosystem. I lead business development, marketing, and operations with a unified goal: helping retailers reach more nonprime customers and convert more transactions through flexible, seamless payment experiences while enabling customers to get the durable goods they need, when they need them.
That means spending more time with merchants & partners, aligning product and go-to market strategy with e-commerce and physical in-store environments, and ensuring growth initiatives are grounded in the highest priorities of our merchant partners and customers.
The role is less about building internal capabilities and more about connecting strategy, execution, and merchant outcomes, so retailers can confidently partner with Katapult to drive incremental sales.
Give us an overview of point-of-sale payments. How does this mode of payment transform the traditional methods, and how will it benefit businesses?
Derek. Historically, point-of-sale systems were designed to process traditional payment methods like cash, debit, and credit cards. When those options failed, the transaction often ended there. Today, those same POS environments have evolved into decision-making moments that can determine whether a sale happens at all.
Modern point-of-sale payment solutions enhance that moment by embedding additional ways to pay, directly into the checkout experience, both online and in-store. This includes options like the Katapult LTO, which does not require a traditional credit score and allows customers with challenged or no credit to instantly access financial resources that will allow them to complete their purchase at the point of sale. By removing credit as a gating factor, retailers can serve a broader range of customers without adding friction or complexity to the purchase flow. This shift transforms POS from a processing tool into a conversion engine.
Let me give you a real-life example. A potential customer wants to acquire a refrigerator but hesitates because as they are researching pricing and availability, the item seems to be beyond the reach of their cash budget. And, because they are unable to qualify for traditional financing due to their credit profile, they resolve themselves to not purchasing the item.
In other cases, the customer remains interested but realizes that the retailer does not offer a payment option that fits their needs. As a result, they leave and continue their search with a competitor that provides more flexible payment choices or inferior product options.
This is where Katapult comes into play. When a retailer offers Katapult’s no credit required payment option, the customer can understand their purchasing power upfront, access a transparent and flexible path to ownership and complete the purchase quickly and easily online or in-store. Instead of foregoing the purchase or buying elsewhere, they can complete the purchase with their preferred retailer. This is a powerful resource that allows consumers to shop at national and local brands and locations they trust, and acquire high quality products at the most competitive prices.
For businesses, the benefits are measurable and meaningful. Offering transparent, flexible, no credit required payment options helps retailers capture demand that would otherwise be lost due to credit constraints or budget timing. It reduces cart abandonment, increases approval confidence, and allows sales associates and digital checkouts to focus on helping customers move forward rather than navigating payment obstacles. This past holiday season, we surveyed nearly 3,000 consumers and found that more than half of them had already used LTO, and 84% said they would consider using LTO during the holiday season, underscoring how mainstream these transparent and flexible options have become. Importantly, these solutions integrate into existing POS and ecommerce systems, minimizing operational disruption while expanding the addressable customer base.
Katapult introduced transparent lease-to-own options to enhance customer trust and flexibility. What potential risks does this approach pose, and what strategies is the company implementing to mitigate them?
Derek. One of our biggest areas of focus is customer communication, which if not managed well, can lead to risks. For example, if terms are not clearly explained at checkout, this can create confusion about the total cost of the transaction or the lease duration. Expanding lease access to customers who do not qualify for traditional credit also requires disciplined underwriting and ongoing monitoring to ensure sustainable outcomes for the Katapult business model.
Katapult addresses these dynamics first through transparency and simplicity at the point of sale. Customers see the full cost of ownership upfront, and we clearly communicate all of their options to continue leasing, purchase the item on an accelerated timeline, or return the product. Since we don’t have any hidden fees or penalties, our terms are straightforward and easy to understand. This clarity reduces disputes, improves satisfaction, and builds trust between the customer and Katapult.
To support these efforts, Katapult relies on a sophisticated underwriting and monitoring framework that evaluates shopping behavior, cart attributes, and payment patterns in real time. Approval decisions are made quickly, but they are informed by a broad set of behavioral and transactional signals rather than traditional credit scores alone. Post transaction, ongoing performance tracking allows the company to adjust models, pricing, and approval strategies as customer behavior evolves. In addition, because leases are less than a year, on average, performance trends are identified quickly, and any underperforming cohorts can be addressed before they create long-term exposure.
Importantly for retailers, Katapult assumes the consumer payment risk. Merchants receive payment upfront and are insulated from defaults and returns. That structure allows retailers to offer a transparent, flexible payment option without adding operational burden or financial exposure.
By pairing transparent terms with disciplined underwriting and clear customer education at checkout, Katapult mitigates risk and delivers a payment experience that supports conversion, repeat purchases, and long-term customer loyalty.
Retail and e-commerce sectors are continuously evolving to meet consumer demand for flexible payment options. How does Katapult’s lease-to-own solution enhance a Nordability and accessibility for customers while helping retailers drive higher sales?
Derek. Consumer expectations around payments have shifted. Shoppers want flexibility, transparency, and options that fit their financial reality at the moment of purchase. Katapult’s lease-to-own solution is designed to meet that demand by making durable goods more accessible without relying on traditional credit options or introducing complexity at checkout.
For customers, affordability comes from clarity and choice. Katapult allows shoppers to see the full cost of ownership upfront, with no hidden fees, no late penalties, and the flexibility to buy out early or return the item if circumstances change. Because approval does not depend on a prime FICO or credit score, customers who are often excluded from traditional financing options can still move forward with purchases in a way that feels understandable and manageable. This transparency builds confidence and reduces hesitation at the point of sale.
For retailers, that increased accessibility translates directly into higher conversion. When more shoppers are approved and feel confident in their payment option, fewer transactions stall at checkout.
Katapult helps retailers capture demand that would otherwise be lost due to credit declines or budget timing, while maintaining a simple checkout experience that works across ecommerce and in-store environments. Powering choice and flexibility for consumers creates more opportunity for conversion. Importantly, the structure of the solution supports repeat behavior. Customers who have a positive, transparent experience are more likely to return, which helps retailers build longer-term value beyond a single transaction. This is evidenced by Katapult’s strong repeat purchase rate, which has been around ~60% for the past few years. In a retail environment where growth increasingly depends on meeting customers where they are, Katapult’s lease-to-own solution helps balance affordability and access for shoppers while enabling retailers to drive incremental sales, higher approval confidence, and stronger lifetime customer relationships.
AI integration in customer behavior analysis has been an emerging trend in recent times. What opportunities and threats does AI impose in this regard?
Derek. AI creates meaningful opportunities when it is applied to real customer behavior rather than abstract data models. In the context of commerce and payments, AI allows businesses to move beyond static credit signals and better understand how customers shop, make decisions, and engage at the point of sale. This can lead to faster approvals, more accurate risk assessments, and a smoother checkout experience that adapts to customer intent in real time.
For retailers, the opportunity lies in conversion and confidence. When AI is used to evaluate shopping behavior, cart attributes, and transaction patterns, more customers can be accurately approved without adding friction or delay. That reduces false declines, lowers cart abandonment, and helps associates and digital checkouts focus on completing the sale rather than troubleshooting payment failures. AI also enables continuous learning, allowing models to improve as consumer behavior evolves, which supports more consistent outcomes over time.
At the same time, AI introduces real risks if not applied responsibly. One risk is over reliance on opaque decisioning. If customers or associates do not understand how decisions are made, trust can erode quickly. Another risk is bias or model drift. Without ongoing monitoring, AI systems can unintentionally reinforce patterns that exclude certain customers or make decisions that no longer reflect current behavior. Data privacy and security also remain critical considerations as more behavioral signals are incorporated into decision making.
Katapult approaches these risks by using AI as a decision support layer rather than a black box. Models are designed to prioritize transparency, speed, and consistency, with clear customer-facing terms and continuous performance monitoring. Behavioral insights are combined with real-world transaction outcomes to refine approvals and manage risk over time, while maintaining clear guardrails around fairness, privacy, and compliance. Ultimately, AI is most effective when it enhances human judgment rather than replaces it.
When applied thoughtfully, it allows retailers and payment providers to better meet customers where they are, improve access without sacrificing discipline, and create payment experiences that feel both flexible and trustworthy at checkout.
Assessing return on investment is a crucial step to monitor organizational success. How do you measure ROI for Katapult’s growth initiatives, and what key metrics guide your decision-making?
Derek. At Katapult, ROI starts with a simple question: does this initiative help merchants convert more customers in a sustainable way? Growth only matters if it delivers consistent value at the point of sale and holds up over time.
We measure ROI across three connected dimensions. The first is conversion impact. This includes approval rates, checkout completion, and the share of transactions that successfully move forward when Katapult is presented as a payment option. The second dimension is customer quality and engagement. We look closely at repeat purchase behavior, customer satisfaction, and how shoppers engage across channels.
Growth initiatives are evaluated not just on first transactions, but on whether they bring in customers who return and shop again. High repeat rates and strong customer experience signals indicate that we are expanding access responsibly rather than driving one-time volume spikes.
The third dimension is operational efficiency. We assess how quickly and reliably an initiative can scale without adding unnecessary complexity for retailers. This includes time to integrate, ease of execution in-store and online, and the ongoing operational cost required to support growth. Initiatives that deliver incremental sales while remaining simple to operate consistently outperform those that require a heavy lift from merchant teams.
These metrics guide decision making on where to invest, where to refine, and where to pull back. The goal is disciplined growth that benefits both Katapult and our retail partners by improving conversion, expanding access, and creating long term customer value ratherthan short term volume alone.
As a visionary leader, you focus on both sustainability and innovation. How do you strategize to combine both elements while driving progression to Katapult?
Derek. For us, sustainability and innovation are not competing priorities. Innovation only matters if it can scale responsibly, and sustainability only works if the product continues to evolve alongside customer and merchant needs.
The way we combine the two starts with being clear about the problem we are solving. At Katapult, innovation is focused on removing friction at the point of sale and expanding access for customers who are not well served by traditional payment options. We invest in new capabilities when they directly improve conversion, transparency, or ease of use for merchants and customers, not simply because the technology is new.
Sustainability comes from discipline. Every innovation is evaluated through an operational and performance lens, including how it impacts approval quality, customer outcomes, and the day-to-day experience for retail partners. We prioritize solutions that can be integrated quickly, explained clearly at checkout, and supported consistently over time. That approach allows us to grow without introducing unnecessary complexity or risk.
We also take a long-term view of customer trust. Transparent terms, clear communication, and fair treatment are not only the right thing to do, they are also essential to building repeat behavior and durable growth. Innovation that undermines trust may drive short term volume, but it is not sustainable. We’ve definitely learned this lesson and do everything we can to build on our mistakes.
By grounding innovation in real merchant needs and pairing it with disciplined execution, we are able to progress thoughtfully. The goal is steady, durable growth that benefits customers, supports retailers, and allows Katapult to continue evolving without losing sight of what makes the platform work at scale.
Tune Into Our Other Informative Interviews:
