Slovenia-based Leanpay, founded in 2017, has secured a financial boost of €2.5 million from Lead Ventures for their Buy Now Pay Later (BNPL) payment solution. The young company has tripled its turnover this year, expecting to reach a final total of €2 million, and is trusted by nearly 400 online stores.
Currently offering an instant instalment payment solution in Slovenia and Croatia for online purchases, the young company is becoming a key player in the growing BNPL market. The strong momentum of e-commerce we are currently seeing globally, spurred on by the pandemic, has increased demand for simple, fast and flexible online payment services, and BNPL has become the popular trend among a new generation of consumers.
BNPL provides a unique consumer experience, giving users considerable freedom to repay purchases. It enables customers to shop smoothly and conveniently online, wherever and whenever they want.
The instalment payment solution industry for online buyers has generated over €400 billion in turnover globally in 2020, and this number is expected to double by 2025. One of the largest players in the European market, Klarna, has already been integrated into the system of over a quarter of a million e-commerce businesses. With the instalment option, e-commerce businesses are finding increases in conversion rates as shoppers were more likely to complete their purchase when they could spread the cost over a period of time. Businesses have reported a 30 % increase in the average value of orders.
Misa Zivic, co-founder and CEO of Leanpay has commented that Leanpay offers something different to the BNPL market, namely that it is focusing on purchases of much higher values. In addition, the young company is focusing in Central and Eastern European (CEE) markets, which are generally untouched by global players. Currently, only traditional players offer digital credits in these countries.
CEO of Lead Ventures (lead investor in this funding), Ábel Galácz, said: “The company’s self-developed risk model, which can further teach itself through machine learning based on the experience and information gained, also adapts and manages the uniqueness of local markets.”
The funding secured by the BNPL player will enable them to accelerate their presence in existing markets, consolidating their position, as well as boost expansion across the CEE region, with a target to enter Hungary in 2022.