Keo World, the BNPL FinTech, has announced a seven-year debt facility of up to $500 million from Hayfin Capital Management, an asset management firm, a press release says.
The investment will go towards boosting its purchasing power for SMBs.
Keo was founded in 2020. The platform issues Keo American Express Virtual Cards and credit lines with a quick digital approval process for smaller businesses.
If retailers want to offer BNPL to their customers for B2B, they can do so “instantly” and without integration – though there’s a requirement that they take payments through American Express.
“We are delighted to have this funding arrangement, which will enable us to grow the reach of our B2B supply financing program to businesses across Mexico,” said Paolo Fidanza, founder and CEO of Keo. “In a market where less than 12% of total traditional credit is extended to SMBs, our Workeo product allows business buyers to access key inventory on credit, and suppliers to increase their recurring sales. Our product enhances working capital management via an all-digital frictionless and low-cost inventory financing platform, thanks to the American Express network.”
In addition, Mario Luna, vice president of Global Network Partnership Latino América at American Express, said the SMB segment is important to building up the B2B payments ecosystem in Mexico.
“This agreement enables further product development and expands our volume so we can continue to help these businesses grow,” he said.
BNPL payments are becoming popular all over the financial spectrum – not just with those who are trying to save money, PYMNTS wrote.
The research from PYMNTS shows that BNPL is becoming popular these days with customers earning over $100,000 a year. Almost half of them, 47%, have expressed a desire for the system for their companies.
The next-highest interest comes from those earning between $50,000 and $100,000 a year, and then those earning less than $50,000.