Credit Key, the B2B e-commerce payments solution, announced today that it has recently closed $33.85M in total series A financing to support growth with participation from Greycroft, Bonfire Ventures, Loeb.nyc and other investors. The funding comes at a time when Credit Key is experiencing great traction with online merchants that are drawn to the power of its buy now pay later point-of-sale lending tool.
“B2B e-commerce continues to expand at an incredible pace, but a great majority of merchants still lack the payment tools that their customers are asking for,” said John Tomich, co-founder and CEO of Credit Key. “As we equip more and more merchants with our point-of-sale financing option, we continue to see data that points to larger orders, fewer abandoned carts and improved customer acquisition.”
Credit Key offers an alternative payment solution to B2B merchants enabling them to improve the customer experience at check out. Credit Key’s proprietary process allows for lightning fast financing approval that provides purchasers an attractive financing option at the point-of-sale. Credit Key lives alongside other payment options at checkout, but it provides the purchaser better terms and comes at no risk to the merchant. Credit Key assumes the credit risk and any loan servicing, and qualified buyers enjoy transparent payment plans and competitive rates.
There are more than $9T in B2B payments processed in the U.S. each year. Currently, just $1.3T of this activity is transacted online, but e-commerce B2B payments are increasing rapidly and expected to reach $1.8T within the next two years. As it stands today, small to medium sized enterprises make up for half of all B2B payments, or roughly $4.5T.
Tomich added: “As small and medium sized businesses increase online purchasing, they’re eager to find alternatives to the limits of both traditional trade credit and the common credit card. We anticipate continued momentum and we’re excited to assist small businesses as they work through the recovery and position themselves for the future.”
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