in3 secures $11.1m Series A from Finch Capital; partners with Worldline

Hans Langenhuizen, the Chief Executive Officer of in3

 in3, a Dutch Buy-Now-Pay-Later (BNPL) fintech business, has announced the completion of a $11.1 million Series A funding round from Finch Capital as its growth soars.

In addition to this, in3 are today launching free BNPL services for consumers, starting in the Netherlands, through an innovative partnership with global digital payments leader Worldline.

Working with payment service partners, in3 offers consumers the ability to pay for purchases in three instalments at no cost: no interest/transaction costs and without credit registration.

Current customers include Kwik Fit, EP, La Souris, Matt sleeps, Dekbed-Discounter.

in3 to provide BNPL services to Worldline clients

Through their partnership with WorldLine, in3 will provide them with a technology stack that will allow both online and offline merchants, who are part of the Worldline network, to offer Buy-Now-Pay-Later payment services to its customers without additional integrations.

The BNPL payment 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 to online.

Looking ahead, the BNPL payment adoption is expected to grow steadily at a Compound annual growth rate (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, the Chief Executive Officer of in3 said of the partnership “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 quick market adaption

in3, created in 2018 as an antidote to the BNPL, Hans Langenhuizen reflected on the early days: “Our founding team was part of the 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.”

“At the same time we noticed a demand to pay larger expenses in instalments. But paying in instalments has even more disadvantages for consumers such as high interest rates and they are documented in their national credit register. These products benefit from people who cannot afford to buy at one time. This was not sustainable from perspective.”

“in3 was our honest approach to offer BNPL to consumers without costs which effectively allowed people to pay in 3 instalments within sixty days, with 0% interest. Because of the term of 60 days, a 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 said, “BNPL is a tremendous value add for merchants and we are thrilled to work with in3 to expand our service offerings.”

To support the company’s rapid growth, In3 has secured a $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 said, “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.’’