FinTech news in buy now pay later category

Facing the headwinds, rather than pull out of BNPL altogether, investors appear to be shifting bets to what they perceive as a safer subcategory of BNPL: business-to-business (B2B) BNPL. The beneficiaries are startups like OatFi, which today emerged from stealth with $8 million in new equity and $50 million in debt for its platform that provides working capital infrastructure for B2B payments platforms.

These will likely become more acute as customers begin to use BNPL for routine expenses, the agency said — the CFPB found that BNPL customers are increasingly paying for purchases like groceries and gas, spurred by macroeconomic pressures including inflation.

Ratio gives SaaS companies capital upfront so they can offer customers more flexible payment options. Co-founder and CEO Ashish Srimal founded Ratio in 2021 with CTO Mason Blake, and they have been heads down ever since working on the company’s concept, which is to help SaaS and technology companies tap into the $1.5 trillion subscription market for recurring revenue.

Though Halliday plans to charge an initial fee to customers using the product to cover the startup’s costs, Malhotra hopes to eliminate the fee over time as his goal is to keep the product as low-cost as possible for gamers.

After living and working in the United States for almost 25 years, he moved back to Bangladesh in 2018 to digitize micro-credit, with the goal of creating a digital credit platform for micro-merchants that did not require a smartphone or digital literacy.

Unlike Stripe, Klarna’s valuation was cut by its investors – which include Sequoia, Silver Lake, Commonwealth Bank of Australia, the UAE’s sovereign fund Mubadala Investment Company and Canada Pension Plan Investment Board (CPP Investments). The Journal reports that the valuation cut comes from a 409a price change, which means that Stripe hasn’t decreased the value of preferred shares sold in the last round.

Eventually, Kasheesh plans to develop its technology so users can use the same card across multiple transactions rather than having to generate a new single-use card each time, Miller said.

The latest to enter the BNPL field attacking the B2B/SME market is Playter a London-based BNPL platform aimed at SMEs. It’s now closed a $55 million funding round from Adit Ventures and Fasanara Capital, with Fin Capital and Act Venture Capital and 1818 Ventures also participating.

While Apple has partnered with payment providers and others on the financial side of things before in order to make Apple Pay and Wallet work, Pay Later represents the first time the company is handling the actual loans, risk management, and credit checks itself.

Akinin narrated how merchants would use a platform’s BNPL offering, generate revenue, and proceed to pay for the next invoice with this profit or purchase stock from another supplier in an entirely different supply chain.

However, now that consumers have grown comfortable with BNPL as a concept and are increasingly using it as an alternative to credit cards, we’re seeing opportunities for new BNPL products for recurring bills, such as rent or streaming service subscriptions.

Walnut works with healthcare providers so that a patient’s bill can be paid back through $100-a-month increments for 30 months, instead of one aggressive credit card swipe Many BNPL startups, Walnut included, do cash-flow underwriting, in which the company connects to users’ bank accounts to see daily income, spending patterns and savings to see if a loan will likely get repaid by the end of month.

The credit card is one of two options — the second via the mobile app — consumers can use to access CredPal’s BNPL services when they visit a partner store to shop for items ranging from electronics, particularly smartphones, to furniture and groceries. To that effect, CredPal, one of the earliest pioneers of buy now, pay later in Nigeria, has closed a bridge round of $15 million in equity and debt — the latter constituting a very large chunk of the financing — to expand its consumer credit offerings across Africa.

Tabby, the Dubai-based buy now, pay later (BNPL) platform that lets users shop, pay later and earn cash from over 3,000 global brands, including Adidas, IKEA and Bloomingdale, has completed a Series B extension of $54 million.

French startup Sunday, which didn’t even exist in 2020, has raised large sums to allow people to easily pay and share the bill, freeing up wait staff and increasing turnover in restaurants. The payment solution for consumers in restaurants has now raised $17 million in seed financing in a round co-led by Berlin Cherry Ventures and Point Nine Capital of Germany. The benefits for restaurants include a higher potential turnover of tables, more possibility of tips for wait staff and returning customers who enjoy the simple experience. The founding team of Qlub consists of Arun Sharma, Eyad Alkassar, Filiberto Pavan, Gizem Bodur, Jeff Matsuda, Jianggan Li, John Mady, Mahmoud Fouz, Oscar Bedoya and Ramy Omar.

Karny gives Chari valuable data on the loans provided by grocery stores to their customers and allows Chari to credit-assess the unbanked shop owners, determining the most applicable payment terms to give each.

Vartana plans to use its equity funding to work on its product roadmap, which involves adding more staff to its current headcount of 17 across engineering, operations and sales.

Since the Philippines’ payment sector is fragmented, customers can pay back their BNPL loans a variety of ways, including digital wallets, bank transfers, direct debit, linking their bank account or over-the-counter payments in physical stores like 7-Eleven.

Accrue Savings, founded in June 2021 by CEO Michael Hershfield, aims to get people saving again with its merchant-embedded shopping experience that rewards consumers for saving up for the things they want to buy.