The FinTech Sunbit is looking to grow after receiving a $250 million investment.
The $250 million debt facility comes as consumers are increasingly turning to new payment options such as buy now, pay later (BNPL).
“Today it is clearer than ever that Americans require access to better options for how they pay for the things they need,” Sunbit CEO Arad Levertov said in a news release Monday (Dec 5). “We’re committed to helping more merchants build their businesses and consumers pay for non-discretionary expenses.”
The company says the debt facility offers more diversification to its finance sources and supports its growth in its point-of-sale loan offerings and its Sunbit card. Sunbit will use the debt facility to scale its distribution network “and serve the millions of Americans that need fair financial access to everyday needs,” the release said.
Among the companies turning to Sunbit to offer financing are the nation’s dental practices, the company announced last month. Sunbit technology can be found in more than 6,000 dental locations, and in more than 550 dental support organizations (DSOs), with more than 500 new offices being added each month.
There’s a need for such an offering as millions of Americans are forced to choose between paying out-of-pocket or turning down important care when facing unexpected dental expenses, Sunbit Vice President of Dental Jay Letwat said at the time.
“Even patients with private dental insurance face coverage caps, which all but guarantee that any significant treatment will require a hefty out-of-pocket cost as well,” Letwat said.
Meanwhile, recent research by PYMNTS and Nuvei finds that 52% of consumers tried a new payment option last year.
Our data shows that digital wallets are the main beneficiaries here, as 59% of consumers adopting new payment methods began using this option. Look a bit closer, and we see that nearly 53% have embraced credit, debit, or store cards, while another 11% of respondents have given BNPL a shot.
Dig even deeper, “and it becomes apparent that the consumers most firmly entrenched in the paycheck-to-paycheck economy — which represents more than 60% of us here in the United States — are the ones utilizing BNPL and cards,” PYMNTS wrote.
Our research found that more than half of respondents making under $100,000 use those payment conduits, and 11% leveraged BNPL.