BNPL fintech in3 secures $11.1m Series A from Finch Capital; partners with Worldline of offer free BNPL services in3 revenue has increased 300% year-on-year since 2018 scaling reach and operations as the Dutch fintech partners with global payments company Worldline
Amsterdam, Netherlands | March 10, 2022 09:00 AM Eastern Standard Time
in3, a leading Dutch Buy-Now-Pay-Later (BNPL) fintech business, has today announced a $11.1m funding round from Finch Capital as growth soars. In addition to this, in3 are today launching free BNPL services for consumers, starting in the Netherlands, through an innovative partnership with global digital payments leader Worldline.
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. 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 $7.6b. This growth has been spurred on businesses moving online and by the growth of ecommerce, more generally. The pandemic certainly helped propel the move to online. Looking ahead, 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 reach $41.7b million in 2028.
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.”
in3 was created in 2018 as an antidote to the traditional BNPL market, Hans Langenhuizen reflected on the early days: “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. First, you need to pay the full amount within 14 days and there are very low spending limits. At the same time we noticed a demand to pay larger expenses in instalments. But paying in instalments has even more disadvantages for consumers such as high interest rates and they are documented in their national credit register. These products benefit from people who cannot afford to buy at one time. This was not sustainable from perspective.”
“in3 was our honest approach to offer BNPL to consumers without costs which effectively allowed people to pay in 3 instalments within sixty days, with 0% interest. Because of the term of 60 days, a registration in the credit registers is not required. This gives the consumer the possibility to buy what they want instead of compromising on quality products. For example, you can buy that refrigerator at no extra cost and then you have three salaries to pay for it. Our merchants profit from in3 in their checkout as well: it results in a substantial increase in transactions and importantly, a higher average transaction value. We see that the buyer more often goes for the more expensive product.”
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.”
To support the company’s rapid growth, In3 has secured a $11.1m funding round from Finch Capital. 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.
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.’’
In3, founded in 2018, provides more than 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: no interest - or transaction costs and without credit registration. With its seamless technology platform and consumer friendly approach, in3 scores an average customer satisfaction of 9.3/10 according to kiyoh.com. This year’s goals are to enter the German market and roll-out an in-store solution. For more information: http://www.payin3.eu/.
About Finch Capital
Founded in 2013, Finch Capital is a series A/B investor in high-growth financial technologies companies run by exceptional entrepreneurs. Our mission is to fund and support the best entrepreneurs creating products that will shape the future of finance. We leverage our international network and industry expertise to enable our portfolio companies to grow into leaders in their field. We have a track-record of backing future industry champions including AccountsIQ, Aylien, BUX, Brickblock, Brytlyt, Fixico, Fourthline, Goodlord, Grab, Hiber, Twisto and ZOPA. Finch Capital consists of a team of 12 investment professionals with wide entrepreneurial experience (e.g. Adyen, Deliveroo, Deepmind), prior investment experience (e.g. Accel, Atomico, Egeria) and industry backgrounds (e.g. Facebook, Google and McKinsey), located across offices in Amsterdam, London and Jakarta. Finch Capital is an active producer of original research on the State of European Fintech and the Fintech sector post Covid-19. For more information see www.finchcapital.com.
Worldline [Euronext: WLN] is the European leader in the payments and transactional services industry and #4 player worldwide. With its global reach and its commitment to innovation, Worldline is the technology partner of choice for merchants, banks and third-party acquirers as well as public transport operators, government agencies and industrial companies in all sectors. Powered by over 20,000 employees in more than 50 countries, Worldline provides its clients with sustainable, trusted and secure solutions across the payment value chain, fostering their business growth wherever they are. Services offered by Worldline in the areas of Merchant Services; Terminals, Solutions & Services; Financial Services and Mobility & e-Transactional Services include domestic and cross-border commercial acquiring, both in-store and online, highly-secure payment transaction processing, a broad portfolio of payment terminals as well as e-ticketing and digital services in the industrial environment. In 2020 Worldline generated a proforma revenue of 4.8 billion euros. worldline.com
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