A whole new dimension of purchasing method is here! Thanks to Swedish challenger bank Klarna. Buy Now Pay Later (BNPL) has quickly risen to fame in the UK in the last few years.
Klarna spearheaded the initiative, partnering with retailers to give consumers the option of upfront credit, which can be paid, at a later date, either via a deferred payment in full or by splitting it.
The UK’s e-commerce market is currently the third-largest globally. It is predicted to be worth £264 billion by 2024, a 37% increase in 2020.
According to WorldPay, Buy Now, Pay Later is growing at 39% annually in the UK. Further, it is expected to account for 10% of all UK e-commerce sales by 2024.
To capitalise on the market, Manchester-based Payl8r has secured £40 million from Conister Bank, to become a £1 billion fintech business within five years.
The company will use the funding to accelerate further growth by helping the business grow its customer base, partner with larger brands, grow into new sectors, and bring new products to markets.
Further, the funding has the potential to generate a further £40 million for Payl8r, says the press release.
Founded in 2016, Payl8r is a flexible, convenient, and modern method of paying for goods and services online and in-store. Payl8r lending is based on affordability rather than just credit history.
The buy now, pay later millennial finance firm has tripled its lending with a 334% growth in the last year and has doubled the workforce YoY since launching in 2016.
Also, the company is extending its office space and has built a new in-house creative team to keep the business propelling forward.
Managing Director at Payl8r, Samantha Palmer said: “Closing our first funding facility with Conister Bank is fantastic news for both our firm and our customers, who could benefit from seeing Payl8r now available with many more brands they love. It’s been a long process, but one that will see Payl8r growing at pace and biting at the heels of our competitors to become the main provider of credit to millennials in the UK. The feeling in the team is electric and I’m so grateful to all the Payl8r family who has joined us on our journey and continues to play a major part in the company’s success”