PayBright, a Canadian fintech lending and payments provider, announced that it has raised $34 million in a growth equity financing from goeasy. The transaction adds to a recent financing led by the Canadian Business Growth Fund and with participation from PayBright's existing investors, including iA Financial Group. The total equity raised in the two transactions totals $60 million.
PayBright partners with retailers and allows 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," said Wayne Pommen, President & CEO of PayBright. "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. Merchants that partner with PayBright are seeing growth in customer traffic, increases in checkout conversion of 10-30%, and average order values that are as much as 80% higher than non-financed orders.
goeasy is Canada's leading provider of financial services for non-prime consumers. Throughout goeasy's history, it has served over one million Canadians and originated over $3.3 billion in consumer loans, with one in three borrowers graduating to prime credit and 60% increasing their credit score within 12 months of borrowing.
PayBright and goeasy also announced today a partnership in which goeasy's consumer lending division, 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 Canada's leading instant point-of-sale financing solution that serves the entire credit spectrum of Canadian consumers in a single, seamless user experience. Between them, PayBright and goeasy 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," continued Pommen. "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."