Tymit will use the funding to accelerate its product development and support the launch of its market disrupting B2B2C instalment programme proposition for merchants. It will be providing all the benefits of BNPL under merchants’ own brand for free and the ability to strengthen their customer relationships through data-driven insights and loyalty. The company will also continue to invest in its consumer proposition which is already live with over 40,000 active users and since 2021 has processed GBP 75 million in transactions.
Tymit’s proposition will give merchant partners the ability to provide consumers with flexible payment options that enable them to pay in instalments, with amendable terms to meet the needs of consumers’ individual circumstances and so, granting them the peace of mind to spend with confidence. With this investment, Tymit can expand its operations, bring new partners on board, and continue to help merchants meet customer needs and drive growth.
Company officials stated that the credit providers and banks who dominate wallets built their products for the bottom line, not for consumers or merchants. High merchant fees of 2-8% might be good for profits, but they hamper merchant growth. They’re happy to provide merchants and partners with the instalment programme experiences that will help them get closer to their customers without taking a bite out of the basket or squeezing out their brand.
With inflation rates rising, the use of credit is growing rapidly. July 2022 set a record for credit card usage in the UK. Global BNPL payments are also forecast to grow by 50.5% annually to reach GBP 2.72 trillion (USD 2.99 trillion) at the end of 2022, yet merchants are paying for their own disintermediation, as per the press release.
Prevalent BNPL providers’ fees of 2-8% take a big bite out of every basket and drive a wedge between merchants and their customers, chipping away at brand loyalty over time. This storm has created the need for a new breed of instalment programme provider to become the go-to infrastructure underpinning the fast-growing BNPL market.
Tymit is authorised by the Financial Conduct Authority (FCA) and Payments Service Regulator (PSR) in the UK to provide consumer credit and payment services and has proven instalment card operating experience. This makes Tymit one of the first regulated BNPL provider in the UK at time of writing. Tymit’s proprietary platform was built entirely in-house and provides end-to-end capabilities from onboarding and activation to engagement and servicing.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now