Bringing the buy-now pay-later model that transformed companies like Klarna and Affirm into billion dollar businesses to small businesses across the U.S. has netted the payment and lending company Credit Key another $33.85 million in funding.
The Los Angeles-based company raised its latest cash from Greycroft, Bonfire Ventures, Loeb.nyc and other, undisclosed, investors, the company said.
“B2B e-commerce continues to expand at an incredible pace, but a great majority of merchants still lack the payment tools that their customers are asking for,” said John Tomich, co-founder and chief executive of Credit Key, in a statement. “As we equip more and more merchants with our point-of-sale financing option, we continue to see data that points to larger orders, fewer abandoned carts and improved customer acquisition.”
For businesses, the company offers an alternative payment solution that quickly provides financing for purchases at the point-of-sale.
Credit Key assumes the credit risk and loan servicing, and buyers can have a transparent payment plan with competitive interest rates, the company said.
The company is tackling a huge market. There are more than $9 trillion in business-to-business payments processed in the US each year, and while (only) $1.3 trillion of those payments happen online, the percentage of e-commerce transactions is growing rapidly.
Credit Key said that it expects the e-commerce market to reach $1.8 trillion by 2022.
“As small and medium sized businesses increase online purchasing, they’re eager to find alternatives to the limits of both traditional trade credit and the common credit card,” Tomich said. “We anticipate continued momentum and we’re excited to assist small businesses as they work through the recovery and position themselves for the future.”