The fintech startup Raylo has developed a platform that helps companies to embed a subscription model into payment processes. Founded in 2019, the startup has just picked up the new funding as a strategic investment from Wayra UK, part of the global telecoms group, Telefónica. Existing investors Octopus Ventures and Macquarie also participated in the round.

The surge in demand for more flexible ways to pay, brought on by the rapidly increasing cost of living, has fuelled a change in consumers’ expectations, as Raylo observed.  The Buy Now, Pay Later (BNPL) space is well known for its ‘Pay in 3’ model and is particularly popular for small and mid-sized purchases with fast fashion and beauty retailers. However, for larger ticket items such as consumer electronics, there lacks a solution to fully address consumer affordability and poor checkout conversion rates.

This is where London-based Raylo finds its target market. By adopting Raylo Pay, retailers can add a new subscription revenue stream that can increase customer conversion, while offering another option at checkout.

The platform allows consumers to have access to the latest products via a monthly subscription that’s both more economical and sustainable. Retailers are paid upfront and in full (zero fees) for any purchases, whilst consumers pay only a fraction of the cost of the product during the subscription term. When consumers are ready to upgrade, the old products are returned and enter Raylo’s circular process of refurb and re-commerce.