Our latest investment - Payflex
We are extremely proud to announce our latest investment in POS finance startup Payflex. Payflex allows the consumer to shop now and pay later (4 installments over six weeks) with no interest charge.
Digital point-of-sale lending has emerged as a new category of lending to help consumers finance new spending and to help merchants reduce basket abandonment. By partnering with merchants and embracing digital technologies, disruptors like Affirm, Bread, and Klarna are competing directly with credit cards and store cards to provide customers with quick and easy short-term credit at the checkout. Payflex is modelled on Afterpay in Australia, (https://www.afterpay.com/en-AU/index) and Partpay in New Zealand (https://www.partpay.co.nz/). Afterpay has shown phenomenal growth since it was established 3 years ago and was one of the best performing stocks on the ASX last year, having listed in July 2017.
Simply put, digital point-of-sale lenders help merchants increase sales — mostly of big-ticket items or large baskets of goods. Experience has shown that POS finance has increased merchants sales by between 30% and 50%. Digital point-of-sale lenders rapidly evaluate a customer’s creditworthiness and then offer creditworthy customers a chance to delay payment until a future date. Digital point- of- sale lenders help consumers and merchants tackle problems such as:
- reducing cart abandonment rates
- helping customers tackle big purchases
- providing short term finance without long term debt
- Reassuring customers by providing greater transparency than traditional lenders
- Reducing the risks of online shopping for consumers
- Providing an alternative to layaway plans and store-branded cards