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Pagaya’s POS product and leading ABS funding capabilities are in growing demand from POS lenders to strengthen merchant satisfaction and activation
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Inaugural POSH 2025-1 transaction is AAA-Rated by KBRA and establishes flexible funding capacity to scale $1 billion+ in POS originations
Pagaya Technologies LTD., a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced the launch of POSH (Pagaya Point of Sale Holdings Trust), a new asset-backed revolving securitization program focused on point-of-sale financing (“POS”), which will enable Pagaya to be a growth catalyst for point-of-sale providers in the U.S.
By combining increased funding capacity through POSH with Pagaya’s embedded AI-driven underwriting technology, lenders can approve more customers at the point of sale. This boosts merchant satisfaction, broader adoption and activation. The inaugural transaction, POSH 2025-1, is a $300 million AAA-rated deal, with an 18-month revolving period, and is expected to close next week. The revolving nature of the deal structure allows Pagaya to reinvest capital as loans are repaid, significantly expanding overall lending capacity, while also increasing capital efficiency.
The POS product is optimized for loans with shorter durations – typically six months – and credit profiles in the 600+ range, empowering lenders to approve more customers without additional credit risk. As demand continues to surge across the POS ecosystem, Pagaya is delivering new capital solutions to drive the next phase of lending partner growth.
“The launch of POSH unlocks a new chapter of strong growth for us in the point-of-sale space,” said Sanjiv Das, Co-Founder and President of Pagaya. “It enables Pagaya to support our existing POS lending partners at scale by powering more customer approvals, which in turn drives greater merchant satisfaction and activation. These results are delivered seamlessly through our API integration into our partners’ origination systems, making it easy to unlock value for both lenders and merchants. This is a powerful example of combining differentiated technology and structured finance to solve real market needs in one of the most exciting and fastest-growing segments of consumer credit.”
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Pagaya is seeing increased demand from point-of-sale lenders for its lending product solutions, and the POSH program will support that demand in combination with other funding channels. Leveraging the Company’s ABS market expertise to support such a rapidly growing and dynamic market segment, underscores Pagaya’s ability to continually meet the needs of capital markets investors.
“We’re proud to launch POSH and bring Pagaya’s category-leading securitization expertise to the fast-growing point-of-sale market, which we expect will represent a meaningful part of our future business,” said Gal Krubiner, Co-Founder and CEO of Pagaya. “Through all market cycles, we continue to scale and diversify our lending products and long-standing investment offerings, while innovating with new structures to fuel growth in more nascent markets, such as POS. As the number one personal loan ABS issuer in the U.S., Pagaya aims to also be the leading issuer of POS ABS, reinforcing our position as a leader in structured finance.”
POSH 2025-1 has over 20 unique investors participating, some of whom were new investors to Pagaya’s deals, with several repeat investors across Pagaya’s other ABS programs.
The POSH 2025-1 transaction continues Pagaya’s strong momentum in ABS markets, including our PAID and RPM programs. Year-to-date, Pagaya has executed over $2.8 billion in rated ABS deals, demonstrating demand for its platform and asset performance. Since inception, Pagaya has raised nearly $29 billion across 71 ABS transactions to fund loan originations across multiple products.
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