What if you could buy with your credit card, and not have to pay interest each and every time you do? Yeah, keep dreaming.
Or PayItSimple.
PayItSimpleallows online and offline merchants to offer their customers interest-free payment installments, using the same credit cards – Visa or Mastercard – that they’d have used anyway. Without having to worry about APRs.
CEO Alon Feit talks about this win-win for consumers and merchants.
Who were your investors and how much did you raise?
We have raised a total of $4.3 from an angel (family business)
Tell us about your product or service.
PayItSimple enables both ecommerce and brick and mortar merchants to offer interest-free monthly installment payments to their customers at the point of sale. Customers do not have to apply for a new credit line, or qualify for a new credit card. PayItSimple works on their existing credit cards, so customers also enjoy all of their regular credit card benefits, such as points, cash-back, and mileage. For merchants, having this additional payment option could mean increased conversion rates, higher average tickets, increased customer satisfaction and reduced barriers to purchase. ISOs and Acquirers enjoy improved merchant acquisition and retention, increased credit card volume and increased revenue via a share of PayItSimple fees.
What inspired you to start the company?
This type of payment facility only exists in six countries. I have lived in both Israel and Brazil (two of the six) and it occurred to my partner and myself that it should be available all over the world.
How is it different?
Other types of payment plans require consumers to apply for more credit, take a new credit card or go through a credit check. Because PayItSimple uses the existing credit card infrastructure, there is no need for this: consumers use the general purpose credit card they already have in their wallets, select the number of interest-free installments that they want, and that’s it. PayItSimple is fast, easy and makes the most financial sense.
What market you are targeting and how big is it?
We are currently focused on the US and UK markets. However we are starting to see interest from Canada and other countries in Europe.
From what you’ve noticed so far, to which demographic do you appeal the most?
PayItSimple really makes sense for everyone; whether you need a bit of help buying the things you need or want, or want to have better cash flow management, PayItSimple makes sense for anyone with available credit.
What’s your business model?
PayItSimple earns money via fees paid by merchants ONLY for each installment plan. There are no set-up fees or monthly fees charged.
What was the funding process like?
The recent funding was for the sole purpose of offering our merchant partners the ability to collect their money at the beginning of the installment plan, as opposed to waiting to be paid as the plan is paid. The process was fairly straight-forward.
What are the biggest challenges that you faced while raising capital?Timing,,,,we had many merchants waiting for this funding, so we had some delay with merchant onboarding.
What factors about your business led your investors to write the check?
The potential of the business J
What are the milestones you plan to achieve in the next six months?
A continuous flow of merchant sign-ups, and well as a POC with VISA Europe Collab.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Keep pushing; if you really believe in your idea, you will find the right investor.
Where do you see the company going now over the near term?
We expect to grow fairly quickly now both here in the US and abroad.
What’s your favorite NYC outdoor summer escape?
Highline!
