Scalapay works by breaking up a payment into three installments, with zero interest, to help merchants garner more sales and aid customers in paying for things.
According to the release, Scalapay assumes all risk through paying the seller immediately and up front. Scalapay offers merchants higher sales volumes through existing customers while also drawing in new ones.
When customers pay with Scalapay, the average value of orders is 49 percent higher, and the average increase in the number of paying customers is 26 percent higher, the company said in the release.
Customers can pick Scalapay at the checkout and set up an account in a few minutes, then pay with Visa, Mastercard, Amex or a bank account. From there, installments are automatically taken from the customer’s chosen method of payment at the due dates.
Co-founder and Chief Executive Officer Simone Mancini said the company’s mission was “to empower merchants to deliver magical customer experiences,” the release says.
“When comparing solutions used by merchants to improve customer experience and their bottom line, interest-free installments stand apart for the high return on investment,” he said, according to the release. “We immediately have a big impact on revenues and the integration effort is minimal. This new funding allows us to support our pipeline of merchants across Europe and further our mission by giving merchants exciting tools to make their ecommerce experience magical.”
BNPL services have become popular as of late, particularly as the pandemic made people tighten their belts amid economic volatility. But a recent PYMNTS study found the service isn’t only for the cash-strapped — financially secure households might be trying to avoid interest fees, for example, and millennials use it to avoid financial risk by paying too much at once.