Acima provides lease-to-own (LTO) financing options, allowing consumers to acquire big-ticket items such as furniture, electronics, and appliances from thousands of retailers without needing traditional credit. Pulse 2.0 interviewed Acima Executive Vice President Tyler Montrone to learn more.
Tyler Montrone’s Background
Could you tell me more about your background? Montrone said:
“I’ve been with Acima, one of the leading providers of LTO solutions and a business of Upbound Group, Inc. (NASDAQ: UPBD), for nearly a decade. I started my career in legal and compliance roles before moving into leadership positions, where I served as Chief Legal and Compliance Officer, then Chief Development Officer, overseeing product, engineering and underwriting.”
“Since 2023, I’ve been Executive Vice President leading the Acima business. My background includes a law doctorate from the University of Arkansas, a master’s in taxation and a bachelor’s in accounting from Weber State, as well as some great early experiences as an attorney and auditor. So, I have a foundational mix of experience in law, compliance and finance.”
“Drawing on each of these experiences has proved invaluable in scaling Acima’s LTO solution and guiding us to become the category’s market leader.”
Formation Of The Company
What is Acima and how does it work? Where did the idea come from? Montrone shared:
“Acima was founded in 2013 as a fintech startup, with the aim of creating an inclusive, tech-driven alternative to credit and financing. Fairly quickly, the company evolved into a scalable virtual platform before being acquired by Upbound in 2021.”
“We’re a leading provider of LTO solutions that enable consumers, especially those with imperfect credit, to access durable, big-ticket goods like furniture, mattresses, tires, electronics and jewelry through a leasing checkout option that fits their lifestyles and doesn’t saddle them with long-term debt obligations.”
“How it works is simple – customers can quickly apply at checkout with our mobile app, online or in-store at one of our thousands of retail partners. Application decisions are among the fastest in the industry and are based on factors like income and banking history rather than a heavy reliance on bureau credit scores.”
“If a customer is approved, Acima purchases the items from the retailer and leases them to the customer. Customers can make optional lease renewal payments aligned with their paydays, with the ability to acquire ownership early (usually via a 90-day early purchase option), or after they have paid the total number of optional lease renewal payments necessary to acquire ownership. They can also return the leased items anytime, without penalty.”
“The idea originated from recognizing the needs of consumers who were denied when they applied for credit cards and financing. Everyone needs a couch to entertain company, tires for the car and a bed to sleep on. Acima helps make access to these essentials possible for consumers who have imperfect or limited credit history.”
Core Products
What are the company’s core products and features? Montrone explained:
“Our core offering is an inclusive, revenue-driving LTO solution for durable goods. Consumers get quick, simple applications with fast decisions where they could be approved for up to $5,000 in increased shopping power, based on Acima’s proprietary approval standards. In addition, consumers can also access Acima’s services like shopping or account management via our mobile app, for a streamlined customer experience. Other benefits include early purchase options as discussed earlier and no long-term obligation – customers can return anytime.”
“At the same time, Acima LTO is highly beneficial for retailers to implement as a checkout option to capture the sales that would typically be lost to abandoned carts or walkaways, when credit and financing options deny customers’ access. As a result, Acima LTO can help drive greater revenue. At the same time, Acima’s integrations are seamless in-store, online and via our mobile app marketplace technology, helping to avoid what could be expensive implementation costs or fees.”
“Acima also utilizes proprietary technology for fraud detection, underwriting and seamless user experiences. Importantly, if a customer does decide to return an item, there is no recourse for the retailer – all returns are handled by Acima, and most importantly, retailers get paid fast with no added risk.”
“We can also provide retailers with tools like staffed support, marketing materials and a digital ecosystem to boost sales and reach new customers. Some retailers have described the Acima experience as “turning on a light switch.” It’s revenue that they’d become accustomed to losing, but with Acima’s LTO option, retailers can close transactions for customers that used to walk out of the store when they were denied credit or financing.”
Challenges Faced
Have you faced any challenges in your sector of work recently? Montrone acknowledged:
“Like any business in the financial sector, LTO providers face ongoing regulatory scrutiny, economic pressures on consumers (inflation, paycheck-to-paycheck living) and competition from evolving checkout options like Buy Now, Pay Later – which itself has seen a surge in popularity and use in recent years. Recently, we’ve navigated the heightened focus on transparency and consumer protection, which both remain our top priorities as we want to give customers the best experience possible. Acima exists to reduce stress at checkout, not add to it.”
“We’ve overcome these obstacles by investing heavily in compliance, technology for clearer communication and customer/retailer education. Our tech evolution (mobile app, marketplace, and AI-driven underwriting), has improved accessibility and reduced friction. Strong, long-term retail partnerships and a focus on inclusive options have driven growth despite swings in the economy, positioning us to serve even more credit-challenged consumers.”
LTO vs BNPL
How does LTO compare to BNPL offers like Klarna or Affirm? Montrone affirmed:
“LTO and BNPL both provide flexibility, but they serve different needs:
BNPL loans are typically short-term (four to six installments). They can be interest-free if they’re paid off quickly, and they’re great for smaller purchases. It’s a good option for prime or near-prime credit consumers.
LTO offers an alternative to credit and financing. It’s not a loan. There’s no interest charge. Acima buys the goods that a consumer wants and leases them to the consumer. We offer optional lease renewal payments that align with a customer’s paydays. We’re focused on higher-ticket durable goods for non-prime or credit-challenged consumers. There’s no debt obligation, so consumers can return anytime, and we offer early ownership options. The cost of LTO can be higher if customers don’t take advantage of an early purchase option, but it provides access where BNPL might not.
For some retailers, LTO complements BNPL as a “waterfall” option: When BNPL declines, retailers can offer LTO as an additional option to try and close transactions and send consumers home with the goods they want. We’re not direct competitors, but alternatives for consumers with varied financial circumstances.”
Evolution Of The Company’s Technology
How has the company’s technology evolved since launching? Montrone noted:
“Since our fintech roots, we’ve transformed from a basic virtual LTO platform into a full digital ecosystem. The early focus was on fast approvals, using alternative data and an industry-leading support structure.”
“Post-2021 Upbound acquisition, we’ve launched: The Acima Mobile App (with over three million installs), Acima Marketplace for direct online shopping, a seamless e-commerce experience and the Acima LeasePay Card (virtual and physical) for broader use.”
“These innovations helped us create a frictionless experience, expanding from in-store to omnichannel and potentially doubling our addressable market through mobile and web integration.”
Significant Milestones
What have been some of the company’s most significant milestones? Montrone cited:
“We were founded in 2013 as a company called Simple Finance, with rapid growth as a startup and $200M+ in prior funding. We started leasing wheels and tires in 2014, reached 100 coworkers in 2015 and won the first of fourTop Workplaces awards in 2019.”
“In 2021, we were acquired by Upbound and launched a digital ecosystem, accelerating scale. Since then, we surpassed three million app installs by 2025, acquired Bridgit and developed exclusive partnerships with major retailers like Bob’s Discount Furniture, Ashley Furniture and CITY Furniture.”
“We’re continuing to expand our network to thousands of merchants, serving millions of credit-challenged customers.”
Customer Success Stories
Can you share any specific customer success stories? Montrone highlighted:
“Common success stories include customers rebuilding lives with essentials. If a consumer experiences a financial setback in their life, we want to help them put tires on the car and furniture in the living room, when credit and financing barriers turn them away.”
“Our retail partners report increased sales and loyalty from offering the LTO option. Many customers appreciate the flexibility to purchase early or return, because it’s aligned with the unpredictability of real-life changes. We can turn a “no” from credit or financing into an LTO ‘yes’ for quality goods.”
“In terms of a specific customer success story, one that I would highlight is our partnership with E&S Management. They’re an optical retailer with eight stores in the San Antonio metro. They were facing challenges with non-prime and thin-file customers walking out of their stores empty-handed due to credit and financing barriers.”
“Since partnering with Acima, they’ve doubled their average order value from $350 to $700 and reduced walkaways to 9%. Acima accounts for 55% of their revenue. It’s a thriving partnership. Customers who may have been turned away in the past by credit denials can now upgrade to premium eyewear or just make sure that their kids have the glasses they need for school.”
Funding/Revenue
Are you able to discuss funding and/or revenue metrics? Montrone revealed:
“Acima was acquired by Upbound Group in 2021 in a transaction valued at $1.65 billion. As part of a public company (NASDAQ: UPBD), detailed metrics are in our filings. We’ve driven significant growth for Upbound’s Acima segment through partnerships and tech.”
Total Addressable Market (TAM)
What total addressable market (TAM) size is the company pursuing? Montrone assessed:
“We estimate the virtual LTO TAM at $45-55B annually, with potential to approach $100 billion through digital innovations expanding access to durable goods, even in an uncertain economic climate.”
Differentiation From The Competition
What differentiates Acima from competitors? Montrone affirmed:
“What truly differentiates Acima from competitors is our combination of scale, technology and retailer-centric support. We’ve developed the largest merchant network in the industry, along with exclusive partnerships with leading retailers in categories like furniture and tires.”
“Our advanced technology stack includes a comprehensive mobile and digital ecosystem, powered by advanced underwriting that enables smarter, faster and more accurate application decisions.”
“Backed by the resources of Upbound Group, we have the scale to drive continuous innovation while maintaining the highest standards of compliance and governance.”
“We have the biggest sales and support teams in the industry, and a sub-three-minute response time when our retailers reach out for assistance. All of these qualities add up to strong conversion, sales growth, loyal customers and satisfied retailers.”
Future Company Goals
What are some of the company’s future goals? Montrone emphasized:
“We’re focused on expanding our market presence as the premier LTO provider for enterprise and SMB retailers alike – growing partnerships, enhancing digital tools and innovating to serve more consumers.”
“Goals include deeper omnichannel integration, new product features and solidifying our role as the premier LTO provider to drive retailer sales and consumer access.”
What People Should Know
What do people usually miss about the story – is there anything else you would like to add? Montrone concluded:
“People often overlook that LTO isn’t just an alternative to credit and financing. It’s true access without debt stacking, empowering millions of consumers facing financing barriers. They want to improve their lives with quality goods, and we can help.”
“We’re proud to partner with retailers to build bigger, more inclusive presences, turning declined transactions into better customer experiences and real revenue. I’m excited to share how Acima is leveling up the checkout experience!”
