in3, a Dutch Buy-Now-Pay-Later (BNPL) fintech business, had recently announced $11.1Mn funding round from Finch Capital as growth soars. Additionally, in3 has launched free BNPL services for consumers, starting in the Netherlands, through an innovative partnership with global digital payments leader Worldline.
in3 offers the consumers the ability to pay for purchases in three installments at zero costs, no interest or transaction costs, and without credit registration as during working with payment service partners.
The current clients comprise Kwik Fit, EP, La Souris, Matt sleeps, Dekbed-Discounter. Via their partnership with WorldLine, in3 will offer them a technology stack that will allow both online and offline merchants, who are part of the Worldline network, to offer BNPL payment services to its customers without additional integrations.
The BNPL payment platform in the Netherlands is expected to grow by 74.8% in 2022 reaching $7.6b. This growth has been spurred on businesses moving online and by the growth of eCommerce, more generally. The pandemic certainly helped propel the move online. Looking ahead, the BNPL payment adoption is expected to grow steadily 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.
Hans Langenhuizen, CEO in3 stated: “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 was created in 2018 as an antidote to the traditional BNPL market, Hans Langenhuizen reflected on the early days: “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.”
Mr. Langenhuizen added: “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 people who cannot afford to buy at one time. This was not sustainable from my perspective.”
Mr. Langenhuizen further explained that “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. Because of the term of 60 days, registration in the credit registers is not required. This gives the consumer 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.”
Erwin Oudshoorn, Manager Direct Sales Netherlands stated: “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.”
To support the firm’s rapid growth, In3 claims to have secured an $11.1m funding round from Finch Capital. The capital will be used to further build out the technology platform and continuously invest in improved customer satisfaction through strategic hiring across the entire team.
Radboud Vlaar, MD Finch Capital stated: ‘’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.’’
Press Release received on Mail
