A ‘buy now, pay later’ travel company has raised £ 15.8million to fund the rollout of its app for online payments.
London FinTech Butter was founded by Timothy Davis, Stefan Hobl and Nik Haukohl, achieving full FCA regulated status in 2017.
When the pandemic put an end to the travel and tourism industry two years later, Butter launched a shopping app alongside its travel offering, allowing customers to spread the cost of any purchase across any Online Store.
Unlike other BNPL vendors, Butter says its solution allows customers to split the cost of shopping with each store on the internet, without requiring merchants to support Butter through technical integration.
Its own universal cash register integrated into the app supports payment to retailers, with customers able to reimburse costs in 2, 3 or 4 monthly installments. It now has more than 100,000 customers.
Popular stores for the Butter app include Amazon, Argos, BooHoo, ASOS, H&M, Zara, Hugo Boss, Sports Direct, AirBnB, Currys PC World, Ao.com, IKEA and more.
“Our goal at Butter has always been to provide consumers with a simple and responsible alternative to credit cards and loans, allowing them to instantly spread the cost of everything from take out to vacations on a simple and transparent payment plan,” all in one to use the account, ”Davis said.
“We want to remove the stigma surrounding the offer to buy now pay later and empower consumers by allowing them to budget and spend wisely and in a way that suits their individual financial needs.
“We decided to achieve this by creating a platform focused on about transparency, responsible lending and the ability to transact on larger tickets compared to other suppliers, while providing more choice to customers through our unique solution, which allows consumers to purchase any store in existing line with Butter.
High butter the £ 15.8million via BCI Finance, the credit arm of London-based business creator Blenheim Chalcot, as well as many others angel investors.
Paul Maurici, Investment Manager at BCI, commented: “Our mission at BCI is to be the funder of choice for UK FinTechs seeking to evolve.
“Butter is a young and ambitious company that combines a technological approach to loans with impressive customer delivery capabilities.
“With its FCA authorization already in place, the company is well positioned to continue strong growth while helping its clients better manage their money.