API-based platform Beez that rewards shoppers with cashback and alternative financing options for online shoppers has launched in the UK.
The Beez platform provides an alternative to the “buy now, pay later” model with no interest, no late fees and no commission.
Co-Founders Lucian Cramba and Tamas Vasile both started their careers in marketing and were aware of the large budgets allocated to acquire customers and keep them loyal.
“At the same time, we saw 70% of credit card owners end up paying interest and often at eye-watering levels in order to buy products from these same retailers. We believed there was a way to help retailers decrease their marketing spend, and at the same time help their customers reduce the cost of financing,” said Lucian Cramba, Co-Founder, Beez.
Beez has over 110,000 users and more than €2.5m in transactions that have been completed through the platform to date is now targeting the UK market. Beez has already established partnerships with over 2,000 shops [including Asos, booking.com, Ali Express, Qatar Airways and Kauffmann]in the UK, and the team are in the process of raising a new round of UK funding with the ambition of becoming a Romanian unicorn.
“In general, though, APR rates are very high compared to the UK’s very low interest rate, and although consumers seem to be getting smarter about how they spend on credit cards, using them for the rewards and protections and repaying balances before incurring interest, the default rate on UK credit card debt (in April 2019) was at its highest for two years,” added Vasile Tamas, Co-Founder, Beez.
“We provide access to credit and rewards to the credit card user. This eliminates the cost of financing and means that the consumer receives 5-10% from the retailer as a commission for a purchase that will add up to 30-60% yearly on loans capital.”