Some of the world’s leading financial institutions including Citi Ventures (Citigroup), Banco Bradesco and MUFG (Mitsubishi UFJ Financial Group) have joined the $44 million Series B funding round of ChargeAfter, a BNPL consumer financing platform.
The Phoenix led the recent Series B investment round. In addition to the banking giants, ChargeAfter’s existing investors joined the financing. In total, the Buy Now Pay Later consumer financing network has raised $60 million so far.
ChargeAfter mentioned that the funding will facilitate the company in the onboarding of thousands of additional retailers. The addition will eventually provide responsible financing to millions of shoppers around the world.
"While BNPL has exploded in popularity in recent years, the marketplace often gives consumers limited options and up to a 70 percent decline rate," said Meidad Sharon, the CEO and Founder of ChargeAfter. "Investor interest in ChargeAfter is a testament to the growing need for a network-driven financing platform made for merchants, banks and financial institutions, as the industry rapidly shifts from a single lender, low-approval reality to a multi-lender experience where responsible lending and approvals rates upwards of 85% or more are the new norm."
Last week, the financial services giant, Mastercard expanded the list of its partners with the addition of prominent BNPL players. Through collaboration, the US-based financial firm is planning to enhance the reach of Mastercard Installments.
Financing Options
In the competitive global financial ecosystem, companies are planning to introduce innovative and convenient payment tools to give consumers easy financing options. ChargeAfter’s network connects retailers and lenders to offer shoppers personalized financing options.
"As consumer interest in BNPL accelerates, it is critical for merchants, banks and financial institutions to offer tailored solutions that meet their customer's evolving needs. ChargeAfter's white-labelled multi-lender platform represents the next generation in consumer lending and enables any business to seamlessly embed diverse credit solutions in their product offering. We are excited to partner with ChargeAfter as they execute on their vision to unify this massive but fragmented space," Boaz Morris, the Investment Manager and VC at The Phoenix, commented.
