Tymit raises £23m in Series A funding to reimagine BNPL market for merchants

Tymit, the next-generation instalment program provider, today announces the closing of its £23 million Series A funding round, taking its total investment to date to £33 million. The investment is led by Frasers Group, one of Europe’s leading retailers, which provides consumers with access to the world’s best sports, premium and luxury brands.

 

Tymit will use the funding to accelerate its product development and support the launch of its market disrupting B2B2C instalment program proposition for merchants; providing all the benefits of Buy-Now-Pay-Later (BNPL) under merchants’ own brand for free and the ability to strengthen their customer relationships through data-driven insights and loyalty. The company will also continue to invest in its consumer proposition which is already live with over 40,000 active users and in the last 12 months processed £75 million in transactions.

 

With inflation rates the highest seen in decades, the use of credit is growing rapidly; July 2022 set a new all-time record for credit card usage in the UK. Global BNPL payments are also forecast to grow by 50.5% annually to reach £2.72 trillion ($2.99 trillion) at the end of 2022. Yet merchants are paying for their own disintermediation. Prevalent BNPL providers’ fees of 2-8% take a big bite out of every basket and drive a wedge between merchants and their customers, chipping away at brand loyalty over time. This perfect storm has created the need for a new breed of instalment program provider to become the go-to infrastructure underpinning the fast-growing BNPL market.

 

Tymit’s proposition will give merchant partners the ability to provide consumers with flexible payment options that enable them to pay in instalments, with amendable terms to meet the needs of consumers’ individual circumstances and so, granting them the peace of mind to spend with confidence.

 

A Spokesperson for Frasers Group said, “This strategic investment into Tymit will allow the Group the ability to continue to pioneer the retail sector and later expand into the Buy Now, Pay Later market – enhancing the consumer experience and providing flexibility across the board.”

 

Martin Magnone, CEO and Co-Founder of Tymit said, “We are really pleased with this strategic investment, which demonstrates Tymit’s disruption of the BNPL market for the benefit of both merchants and consumers. As we worked closely with Frasers Group, it was clear they share our commitment to pushing the boundaries of traditional retail environments and challenging the status quo. With this investment, we can expand our operations, bring new partners on board and continue to help merchants meet customer needs and drive growth.”

 

“The credit providers and banks who dominate our wallets built their products for the bottom line, not for consumers or merchants. High merchant fees of 2-8% might be good for profits, but they hamper merchant growth. This has to stop. We’re proud to provide merchants and partners with the instalment program experiences that will help them get closer to their customers without taking a bite out of the basket or squeezing out their brand.”

 

Tymit is authorised by the Financial Conduct Authority (FCA) and Payments Service Regulator (PSR) in the UK to provide consumer credit and payment services and has proven instalment card operating experience. This makes Tymit the first regulated BNPL provider in the UK at time of writing. Tymit’s proprietary platform was built entirely in-house and provides end-to-end capabilities from onboarding and activation to engagement and servicing.

About Lisa Baker, Editor 2541 Articles
Lisa Baker is the Editor of Always Finance, and writes about Business, Finance Technology and Healthcare. Lisa is also the owner of Need to See IT Publishing.