PayItSimple, a patented, PCI-compliant payment solution technology that enables merchants to offer consumers the ability to make purchases using interest-free installments, announced today that it has secured $10 million in funding from Simpel Management, LLC, NY-based company.
The funding will enable merchants that have joined the PayItSimple platform to offer customers the ability to pay in secure, interest-free installments with the VISA and MasterCard credit cards they already have in their wallets, while the merchants receive the amount of the purchase upfront, without having to wait to receive payments over time.
By making larger purchases more affordable, PayItSimple helps merchants increase sales conversion rates, average tickets and customer retention.
PayItSimple's solution works exactly like a regular credit card transaction and operates on the current payment gateway of each merchant. During the check-out process, the customer chooses the number of installment payments, following which PayItSimple authorizes the full amount of the purchase on the shopper's existing credit card. Due to the fact that PayItSimple optimizes the cardholder's existing line of credit, over 95% of customers that request an installment plan receive an installment plan.
"Six countries in the world use this type of credit card based installment payment plan. PayItSimple is bringing this proven payment facility to the US and to the rest of the world," said Alon Feit, CEO of PayItSimple. "Not only does PayItSimple enable merchants to boost sales conversion and average ticket size, but by allowing them to receive the purchase price upfront, it guarantees that cash flows are not compromised."