in3, an Eindhoven-based Buy-Now-Pay-Later (BNPL) platform, announced on Thursday that it has secured $11.1M (approx €10.1M) in funding from Finch Capital.
The capital injection will allow the Dutch startup to further develop its platform and invest in improving customer satisfaction through strategic hiring across the entire team.
In addition to the funding, in3 has also launched a free BNPL service for consumers, starting in the Netherlands, through an innovative partnership with global digital payments firm Worldline.
Hans Langenhuizen, CEO of in3, says, “We will be supporting Worldline’s merchants by enabling them to offer BNPL to consumers at no fee. We look forward to working with their team and customers. This is testament to the robust platform of in3 and our dedicated team to create seamless integrations with all our partners.”
in3: What you need to know
Hans Langenhuizen founded in3 in 2018 as an antidote to the traditional BNPL market.
According to in3, the BNPL payment ecosystem in the Netherlands is expected to grow by 74.8 per cent in 2022, reaching $7.6B. BNPL payment adoption is expected to grow at a CAGR of 32.8% over the next 6 years.
The BNPL Gross Merchandise Value in the country will increase from $4.3b in 2021 to reach $41.7b million in 2028, writes in3 in a press release.
Langenhuizen says, “Our founding team was part of the early wave of the BNPL movement in the early 2010s. It quickly became a crowded market so we stood back and took a fresh look at the BNPL model and saw several limitations in all of the available products. First, you need to pay the full amount within 14 days and there are very low spending limits. At the same time, we noticed a demand to pay larger expenses in installments. But paying in installments has even more disadvantages for consumers such as high-interest rates and they are documented in their national credit register. These products benefit from people who cannot afford to buy at one time. This was not sustainable from my perspective.”
in3 offers consumers the ability to pay for purchases in three installments at zero costs – no interest or transaction costs, and without credit registration.
He continues, “in3 was our honest approach to offer BNPL to consumers without costs which effectively allowed people to pay in 3 installments within sixty days, with 0% interest.”
Since the company offers a duration of 60 days, registration in the credit registers is not required. This, in turn, gives consumers the possibility to buy what they want instead of compromising on quality products.
“For example, you can buy that refrigerator at no extra cost, and then you have three salaries to pay for it. Our merchants profit from in3 in their checkout as well: it results in a substantial increase in transactions and importantly, a higher average transaction value. We see that the buyer more often goes for the more expensive product,” he concludes.
300% increased revenue
The Dutch fintech partners with global payments company Worldline to provide online and offline customers with BNPL offers at no fee for the end consumer.
in3 says its revenue has increased 300 per cent year-on-year since 2018 as it scales reach and operations. Right now, in3 works with Kwik Fit, EP, La Souris, Matt sleeps, and Dekbed-Discounter.
Erwin Oudshoorn, Manager Direct Sales Netherlands, says, “BNPL is a tremendous value add for merchants in today’s uncertain times and we are thrilled to work with the team at in3 to expand our service offerings.”
Radboud Vlaar, MD Finch Capital, says ‘’in3 has demonstrated a steady and consistent growth trajectory due to its strong technological capabilities and management which has enabled it to provide BNPL to Dutch consumers through integrations with payments providers. The company is enabling a truly omnichannel payments solution.’’
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