thebiginterview Increasingly, consumers want the option of more flexible
payment solutions, instead of having to make large up-front payments for the items they want. At the same time, many of our retailer partners had never used an installment-based payments solution before. Not only are they finding that customers love the flexibility of interest free credit, but retailers also get the benefit of higher checkout conversions and higher basket sizes. It’s a win- win for consumers and retailers. We will aim to have achieved our GMV through a series of
activities from retailer acquisition, consumer adoption and retailer retention.
Please could you explain how the company will use funding to work with retailer partners to increase conversion rates? Te £300 million funding we recently announced will accelerate our plans in two key areas - enhancing and expanding our technology platform, and growing our retailer network. DivideBuy is already riding a massive growth wave, and this investment will bring our solutions to a much wider audience of both retailers and consumers, both in the UK and internationally. Te demand for our solutions shows us that there is a huge
untapped market, especially in the Tier 1 and Tier 2 retailer sectors. Tis investment will give us the capacity to serve those markets, and across many retail verticals. To do that, we’ll be adding more functionality to our technology-centric offering, rich lending data and underwriting engine. Having grown so quickly, we’ll also be expanding our C-suite and
hiring more people, and we’ve already made some key strategic hires to support our expansion. Overall, with this funding and with the successful strategy we’ve
been pursuing, we are confident with our conversion rates as they are higher than industry standards. Tis allows retailers to onboard many more customers. Ideally, we want to continue to build a strong retailer base, giving consumers more choice to buy more goods and spread the cost of terms that make their purchases affordable.
Please could you advise of the current challenges and proposed solutions to manage online payments and encourage increased consumer spend? Te current challenges we see, are that online shoppers have multiple short-term payment solutions when it comes to BNPL. Our solution is less rigid because most of our competitors offer repayment terms up to three or four months maximum, which can impact consumer credit worthiness. At DivideBuy, we give consumers the
option to choose the term length of their credit agreement up to 12 months. Tis allows consumers to make repayments even more affordable by spreading them out over a longer term. Tis also allows them to access larger-value items that they would have to save up for over a longer time period.
www.pcr-online.biz December/January 2022 | 25 To be clear, we don’t encourage consumers to spend more. Our
solution and its affordability checks and flexibility means that consumers can source products with affordable monthly payments, with no hidden fees or complex sign-up processes. At the same time, retailers can offer customers a wider choice of
payment options and increase average basket values, because the customer has a clear view of how much they’ll repay. Consumers can check their credit worthiness and repayment options before they reach the checkout – and all without impacting their overall credit score. Customers also get added flexibility through the option to change a repayment date online, helping them to take control of their finances.
I understand the company was ranked first place on Deloitte’s UK Technology Fast 50 2020 list, what does this means to the company? Ranking first on the Deloitte 2020 Technology Fast 50 list was a huge achievement for us. We’re a young company established in the north of England, and this demonstrates that dynamic fintech innovation, company growth and investment can come from businesses outside of London. For us, it means that we can attract local talents and work with local partners to create great products and services.
Please could you explain a bit more about the interest free credit POS finance market and how it is being driven by technologies, like DivideBuy’s? Te interest free credit POS finance market was worth nearly £10 billion in 2020, and is estimated to be worth £27 billion by 2024. POS and in particular BNPL is on a strong growth trajectory, but it only represents around 3% of the ecommerce market globally and 1% of the UK credit market. Te technology is being driven by consumer demand for different
ways to pay for goods and services, rather than the traditional method such as credit cards. Tat’s why we’re seeing new market
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