Israeli financing platform ChargeAfter has secured an investment from MUFG Innovation Partners, the venture capital arm of Japanese financial services company MUFG, the company announced on Tuesday.
Financial details of the investment have not been disclosed but comes as part of a larger partnership between the companies, that is designed to help the firm in its global expansion.
The investment and partnership will further promote ChargeAfter’s rapid global growth and presence while accelerating the onboarding of new strategic leaders and merchants to the platform, a statement from the company said.
The new collaboration will also expedite the commercial distribution of ChargeAfter’s Point of Sale financing platform to global banks, lenders, issuing banks, and acquirers.
“Dealing with multiple lenders is a huge challenge for both the merchant and the end customer. In ChargeAfter’s approach, a shopper is matched with offers from a diversified network of lenders in real-time, providing an optimized offer to each customer without requiring any additional efforts from the merchant,” said Mayank Shiromani, VP, MUFG Innovation Partners Co. Ltd. “We believe that ChargeAfter’s model has a global potential and it can be applied to other verticals within financial services to provide the best fit solution to customers when they need it.”
Founded in 2017, ChargeAfter is the financial platform created to provide shoppers with fair and accessible financing options tailored to their particular needs. The platform empowers retailers to offer their customers these personalized options from multiple lenders at checkout. The company has offices in Tel Aviv, New York, and Sunnyvale, CA.
The investment and partnership comes four months after Visa made a strategic investment in the financial tech startup in February. The two will partner to provide Visa cardholders with more payment choices and flexibility, the Israeli company announced on Wednesday.
The sum of the investment was not disclosed.
“ChargeAfter created the next wave of credit by connecting merchants and lenders to provide consumers with personalized point of sale financing options from multiple lenders, live and instantaneously at checkout. Consumers submit a simple, four-data-point credit application at checkout,” said Meidad Sharon, CEO of ChargeAfter. “ChargeAfter’s proprietary decisioning engine then processes the credit request across our lender network to find personalized, approved financing offers for the consumer which leads to high take rates, approvals, and sales for the merchant. ChargeAfter’s platform offers omnichannel merchants the financing product and tools needed to deliver instant and flexible credit options from multiple lenders, while ensuring a flawless user experience.”