ChargeAfter provides a new Point of Sales (POS) financial service, which is an enhanced version of the increasingly popular Buy Now, Pay Later (BNPL) product offering. BNPL refers to a short-term installment loan product that allows users to pay for their purchases over a short period of time with no interest. Although credit card-based installment payments have become a norm in developed markets, they are not as widespread in developing markets where the lack of access to the formal financial sector is prevalent, much less being issued with a credit card. Regardless of markets, credit cards are also usually not issued to individuals lacking credit history, which in most cases would also include the younger generation. This has helped to drive the popularity of BNPL amongst these underserved consumer segments. BNPL is also shown to boost checkout rates for digital commerce platforms and websites that embed this payment option at their checkout pages.
ChargeAfter’s product is unique compared to traditional BNPL offerings prevalent in the market. In terms of the customer journey, upon selecting the BNPL option at the checkout page of ChargeAfter’s client, the customer is provided with several payment options that differ in terms of period, and interest rates. The customer can then choose the most favorable installment option from his or her perspective. These options are generated by ChargeAfter, in real time, after matching the buyer’s profile and purchase item value with the terms and requirements from the company’s banking and financial service provider partners. It is common for other existing market solutions to offer only one option.
Meidad Sharon, CEO of ChargeAfter, explains about his company’s value proposition,
We are currently offering services in the United States, Canada, Australia, and other countries. We collaborate with approximately 40 banks such as Wells Fargo and Citibank, as well as major retailers such as Home Depot, LG, and Samsung. This allows consumers to see which bank is offering the most advantageous offer when purchasing goods from major retailers.
ChargeAfter’s business model potentially allows it to scale comparatively faster than other traditional market players in terms of transaction volume processed. Most of the latter may either power their BNPL products through their own underwriting or offer singular options. ChargeAfter’s approach of offering several options from a wide network of banks and financial institutions would increase the overall approval rate of BNPL transactions, leading to a triple win situation of a satisfied customer, increased transactions for ChargeAfter’s merchant client, and more revenue for ChargeAfter.
Founded in Tel Aviv, Israel in 2016, ChargeAfter is currently headquartered in New York, US, which is its main market of operations. ChargeAfter is focused on expanding its network of affiliated stores by raising funds from financial institutions including MUFG and developing white-label POS financial products. MUIP invested in ChargeAfter 2020 due to its value proposition of matching users with appropriate BNPL offerings from multiple lenders in a seamless and timely manner at the checkout. The company has raised funds from other financial institutions apart from MUIP, provided white label solutions to some, and is actively acquiring a larger network of merchants.
