PayBright raises $34M in equity funding from GoEasy
TORONTO – PayBright has raised $34.3 million in growth equity financing from GoEasy, funds it will invest in the expansion of its ‘buy now, pay later’ solution for both e-commerce and in-store purchases. GoEasy will become a minority equity holder the Canadian fintech lending and payments provider and will have a seat on its advisory board.
The transaction, which is expected to close before the end of September, adds to the recent financing led by the Canadian Business Growth Fund and PayBright’s existing investors, including the iA Financial Group. In all, the company has raised some $60 million in new funding over the past year.
In a statement, PayBright said it partners with retailers to enable them to offer a fully integrated instant point-of-sale installment payment plan solution to consumers in both e-commerce and in-store environments. After selecting PayBright as a payment method, shoppers can finalize their purchases in a matter of seconds. Retailers receive their funds directly from PayBright the next business day with no credit or fraud risk.
Consumers then pay for their purchases in installments over time, with interest rates as low as 0%. Unlike other financing options, PayBright does not require consumers to sign up for a credit card and does not charge revolving interest, hidden fees, or retroactive interest.
“This minority investment by GoEasy provides us with additional growth capital to build our merchant and consumer network and to further invest in our technology platform and user experience,” PayBright president and chief executive officer Wayne Pommen said. “We are pleased to have GoEasy join the high-quality investor group that has supported our rapid growth in Canada over the past few years.”
Recently named one of Canada's Top 50 Fintech Companies by the Digital Finance Institute, PayBright has a rapidly growing network of over 4,700 merchant partners across Canada and has approved over $1 billion in credit for over 250,000 Canadians. PayBright’s retailer and brand partners include Wayfair, Samsung, eBay, Peloton, Lenovo, Endy, Casper, Alternative Airlines, and Steve Madden.
The company said merchants partnering with them often see growth in customer traffic, increases in checkout conversion as high as 30%, and average order values as high as 80% greater than non-financed orders.
GoEasy is the parent of EasyHome – this country’s largest lease-to-own home good merchants – and EasyFinancial, which specialises in providing loans to ‘non-prime’ consumers. Over the past 15 years or so, it has lent some $3.3 billion to more than one million Canadians with 33% graduating to prime credit and 60% increasing their credit score within 12 months of borrowing.
EasyFinancial will become the primary provider of non-prime financing within PayBright’s point-of-sale payments platform. By integrating EasyFinancial’s installment loan product into the PayBright platform, the companies now offer an instant point-of-sale financing solution serving the entire credit spectrum of Canadian consumers in a single, seamless user experience. Between them, they have a combined consumer network of 1.25 million Canadians.
“We are also excited to integrate GoEasy into our offering, creating Canada’s most powerful point-of-sale financing solution,” Pommen said. “Through the PayBright platform, GoEasy will be able to instantly approve a large portion of consumers who might not otherwise have been approved by PayBright. This will enhance our overall approval rates for consumers and bring major benefits for our retailer partners.
“It’s also important to us that GoEasy shares our approach to consumer finance. Both companies believe that transparent, fair, and easy-to-understand installment plans are the best way for consumers to buy now and pay later,” he added.