ClarityPay Boosts Consumer Finance Solutions With Neuberger Berman Capital Purchase Program

Point-of-sale lending solution ClarityPay said Wednesday (Feb. 5) that it agreed to up to $1 billion in a capital purchase program from funds managed by investment manager Neuberger Berman’s Specialty Finance group.

The agreement furthers Neuberger Berman’s position in asset-based finance and supports ClarityPay’s growing suite of consumer finance solutions for merchants, the companies said in a press release.

“We empower merchants to take full control of their commerce flows by providing capital to serve more of their clientele and elevate their brand,” ClarityPay CEO and Founder Houman Motaharian said in the release. “We are merchant first so that merchants can be customer first.”

ClarityPay’s platform dynamically presents tailored financing options to maximize customer conversion rates and offers strategies for all segments of the credit spectrum to maximize approval rates, according to the release.

The platform can either augment a merchant’s existing financial solutions or serve as an all-in-one solution, per the release.

“Their innovative platform, coupled with their focus on both merchant profitability and consumer success, makes them a uniquely compelling investment,” Peter Sterling, head of Neuberger Berman’s Specialty Finance team, said in the release. “This deal reflects our confidence in ClarityPay’s potential to deliver high quality financial products which meet the evolving needs of businesses and consumers alike.”

ClarityPay expanded its lending program in January and now provides financing in industries like retail, electronics, mobile devices, elective health, med spa, home improvement, home security, travel and services.

Another payment network, Affirm, said in December that it formed a long-term capital partnership with global investment firm Sixth Street in which Sixth Street will invest up to $4 billion by purchasing Affirm loans in a three-year forward flow agreement. This capital commitment will enable Affirm to extend up to $20 billion in loans over the next three years.

In October, FinTech lender Upstart Holdings sold up to $2 billion of consumer installment loans to private lender Blue Owl Capital. This deal includes $290 million of personal loans that had already been handed out, as well as debt that Blue Owl will buy over the following 18 months in a forward-flow agreement.