The buy now, pay later (BNPL) space has been one of the most alluring fintech verticals since last year and have been on a tear with valuations going through the roof. Recently, Klarna rival Scalapay raised $497M Series B, becoming Italy’s first tech unicorn. Now Dutch BNPL fintech in3 has announced that it has closed a $11.1 million in funding led by Finch Capital.
How will it use the funds?
The capital will be used to further build out the technology platform and continuously invest in improved customer satisfaction through strategic hiring across the entire team.
Erwin Oudshoorn, Manager Direct Sales Netherlands: “BNPL is a tremendous value add for merchants in today’s uncertain times and we are thrilled to work with the team at in3 to expand our service offerings.”
Radboud Vlaar, MD Finch Capital: ‘’in3 has demonstrated a steady and consistent growth trajectory due to its strong technological capabilities and management which has enabled it to provide BNPL to Dutch consumers through integrations with payments providers. The company is enabling a truly omnichannel payments solution.’’
Launches free BNPL services
Besides the investment, in3 has launched free BNPL services for its customers in the Netherlands. It has partnered with global digital payments leader Worldline for the purpose. Through their partnership with WorldLine, in3 will provide them with a technology stack that will allow both online and offline merchants, who are part of the Worldline network, to offer BNPL payment services to its customers without additional integrations.
The BNPL payment in the Netherlands is expected to grow by 74.8% in 2022 reaching $7.6 billion. This growth has been spurred on businesses moving online and by the growth of e-commerce. The pandemic helped propel the move online.
In the future, the BNPL payment adoption is expected to grow steadily at a CAGR of 32.8% over the next 6 years. The BNPL Gross Merchandise Value in the country will increase from $4.3b in 2021 to $41.7 billion in 2028. Already, European BNPL service providers including ZoodPay from Switzerland has picked up investments recently.
Hans Langenhuizen, CEO in3: “We will be supporting Worldline’s merchants by enabling them to offer BNPL to consumers at no fee. We look forward to working with their team and customers. This is testament to the robust platform of in3 and our dedicated team to create seamless integrations with all our partners.”
What does in3 do?
Founded in 2018 by Jos Verkleij, in3 provides over 1,500 online and offline merchants with Buy Now Pay Later payment solutions. Working with payment partners, it offers consumers the ability to pay for purchases in three instalments at zero costs at no interest or transaction costs and without credit registration.
in3 has taken the approach to offer BNPL to consumers without costs, which effectively allows people to pay in 3 instalments within sixty days. As there is no interest and registration, it gives the consumer the possibility to buy what they want instead of compromising on quality products. It results in a substantial increase in transactions and importantly, a higher average transaction value. With this, buyers more often go for the more expensive products.
Working with payment service partners, in3 offers consumers the ability to pay for purchases in three instalments at zero costs: no interest or transaction costs and without credit registration. Current customers include Kwik Fit, EP, La Souris, Matt sleeps, Dekbed-Discounter.
With its seamless technology platform and consumer-friendly approach, in3 scores an average customer satisfaction of 9.3/10. This company aims to enter the German market and rollout an in-store solution.
Langenhuizen, CEO of in3 said: “Our founding team was part of the early wave of the BNPL movement in the early 2010s. It quickly became a crowded market so we stood back and took a fresh look at the BNPL model and saw several limitations in all of the available products.”
