Marqeta client closer to BNPL merchant solution

Marqeta client Tymit, an FCA and PSR regulated provider seeking to change the way consumers relate to credit, is to accelerate the launch of an innovative buy now, pay later instalment programme for merchants, thanks to a successful Series A funding round worth £23 million.

The cash injection makes leading European luxury goods and sports retailer Frasers Group a notable minority investor in Tymit with a total investment of £33 million and brings closer to fruition the fintech’s plans to equip merchants with a white label credit solution in addition to data-driven customer insights.

The development follows last year’s announcement that Tymit has opted to utilise Marqeta’s open API platform to instantly issue virtual cards and to set dynamic spending limits.

Marqeta’s integration capabilities are now helping Tymit to effectively replicate existing card programmes and apply localisation traits to seamlessly launch into certain new territories in a fraction of the time. Tymit’s latest round of funding can enable faster product development and support the launch of its B2B2C merchant proposition.

Tymit expects to continue investing in its consumer proposition, which is already live with over 40,000 active users and in the last 12 months processed transactions totalling £75 million. According to Tymit, rising inflation rates are driving credit growth, with July 2022 setting a new all-time record for credit card usage in the UK.

In the UK, buy now, pay later payments are also forecast to grow by 50.5% annually to reach £2.72 trillion (USD $2.99 trillion) at the end of 2022. Alongside this, many merchants still have to fund their own disintermediation, with some providers leveraging fees of 2-8% in every basket.

Tymit believes this “drives a wedge between merchants and their customers, chipping away at brand loyalty over time”, and creates the need for a new breed of buy now, pay later infrastructure providers.

Tymit’s proposition can help give merchant partners the ability to provide customers with flexible payment options that enable them to pay in instalments, with terms that are amendable to consumers’ unique circumstances. Tymit’s CEO and Co-Founder Martin Magnone said Frasers Group’s “strategic investment” demonstrated that the business was capable of bringing new benefits to both merchants and customers in the buy now, pay later market.

“With this investment, we can expand our operations, bring new partners on board and continue to help merchants meet customer needs and drive growth.

We’re proud to provide merchants and partners with the instalment programme experiences that will help them get closer to their customers without taking a bite out of the basket or squeezing out their brand,” he said.

Tymit is authorised by the FCA and PSR in the UK to provide consumer credit and payment services and has proven instalment card operating experience. Its proprietary platform was built entirely in-house and provides end-to-end capabilities from onboarding and activation to engagement and servicing.