#Fintech #Bulgaria #Sofia #BNPL #Paypercut

Paypercut's Ambitious Venture in BNPL Technology

Paypercut, a rising fintech from Europe, has recently announced a significant step in its journey by securing €2 million in pre-seed investment. This funding, one of the largest for a payments-focused startup in the region, will enable the company to develop a multi-provider Buy Now, Pay Later (BNPL) hub aimed at small and mid-sized merchants particularly in Eastern Europe.

A Solution for Small Merchants

In an era where digital payments are becoming the norm, small and mid-sized businesses often struggle to provide flexible payment options that meet customer demands. Paypercut aims to fill this gap by allowing merchants to integrate a single BNPL solution, enabling them to offer various financing options to their customers without the hassle of multiple integrations. This is especially important given that a single declined BNPL transaction could detrimentally affect the purchasing process, leading to lost sales.

According to Stoil Vasilev, the CEO of Paypercut, “Closing the sale is critical; a single BNPL decline can kill the basket. By combining providers with different risk appetites, we give shoppers choice and merchants a safety net.” This innovative approach effectively empowers small businesses that have historically been underserved in the payments landscape.

The Mechanics of Paypercut's Platform

The BNPL aggregator developed by Paypercut connects multiple underwriters, simplifying the checkout process for merchants. With just one integration, merchants can either allow customers to select their preferred BNPL provider at checkout or utilize an internal algorithm that routes transactions to the provider that can process the payment the quickest or at the lowest cost if speed is equal.

The platform supports transactions across multiple currencies specific to Central and Eastern Europe (CEE), providing a seamless financial experience for businesses and their customers alike. Onboarding is entirely digital, significantly reducing the amount of paperwork usually required. Vasilev highlights this by stating that Paypercut compresses what typically takes weeks into mere days, making the integration of their service incredibly appealing.

Backed by Strong Investors

Paypercut’s latest funding round saw participation from renowned investors such as Concentric, Passion Capital, RTP Global, and Tuesday Capital, among others. The caliber of the investment team greatly influenced the venture's appeal. Ethan Imboden, a partner at Tuesday Capital, emphasized their confidence in Paypercut’s potential by noting that they recognize the “caliber of the team and the clarity of the playbook.” With a straightforward approach to resolving genuine merchant pain points, Paypercut's solution is staged for significant scalability.

Growth Plans and Regional Expansion

The founding team, comprising experienced professionals like Emil Savov and Gareth Walsh, represented a wealth of knowledge from previous projects, notably SumUp. They plan to utilize the freshly acquired capital not just for expanding their BNPL partnerships but also for localizing onboarding flows in various languages and enhancing an agency channel that shares in revenues.

Currently operational in Bulgaria, Romania, and Greece, Paypercut is actively rolling out its services in other CEE markets, including the Czech Republic, Poland, and Turkey. This growth trajectory suggests that they are solidifying their presence in a region ripe for innovative financial solutions.

Conclusion

Paypercut is well-positioned to transform the BNPL landscape for small and mid-sized merchants in Eastern Europe. With a strong funding round backing their ambitious vision, those involved in the regional retail market will be watching closely as they expand their offerings. The integration of various providers under one roof could very well be the solution needed for merchants struggling with fragmented payment options. As they progress, Paypercut may not only enhance customer buying experiences but also bring much-needed flexibility to the financial operations of countless small businesses across Europe.