goeasy Ltd. (TSX: GSY), a leading provider of financial services for non-prime Canadians, announced today that it has entered into a strategic partnership and agreed to make a minority equity investment in PayBright, a Canadian fintech platform focused on instant point-of-sale consumer financing and installment payment plans.
Through this new strategic partnership, goeasy’s consumer lending division, easyfinancial, will become the primary provider of non-prime financing within PayBright’s point-of-sale payments platform. Each year in Canada there is estimated to be more than $30 billion of credit extended to consumers through financing and “buy-now, pay-later” programs offered at the point-of-sale. PayBright has partnered with over 4,700 domestic and international merchants, allowing them to offer installment payment plans to their Canadian consumers in a quick and easy digital experience, through both e-commerce and in-store. By partnering with PayBright, retailers provide their customers with additional spending power and experience increased sales through higher checkout conversion, increased average order value, and greater customer loyalty.
By integrating goeasy’s non-prime installment loan product into the PayBright platform, the companies together now offer Canada’s leading instant point-of-sale payment solution that serves the entire credit spectrum of Canadian consumers in a single, seamless user experience. Each consumer purchase is paid for with a straightforward, easy-to-understand installment payment plan. Unlike other point-of-sale financing providers, PayBright and goeasy do not require consumers to sign up for a credit card and do not charge hidden fees, revolving interest, or retroactive interest for late payments. The easyfinancial non-prime offer will be rolled out on the PayBright platform beginning in November of this year.
In connection with the strategic partnership, goeasy will acquire a minority equity interest in PayBright for an aggregate price of $34.3 million. The investment is expected to be completed by September 30th, 2019. In connection with its investment, goeasy will receive customary shareholder rights as a significant strategic minority investor, including a seat on the company’s Advisory Board.
“Expanding our point-of-sale financing business, as part of the plan to develop our channels of distribution and make credit more accessible to non-prime customers, has been a key pillar of our strategy,” said Jason Mullins, goeasy’s President and Chief Executive Officer. “We are excited about our strategic partnership and investment in PayBright, which will enhance their instant point-of-sale payment platform through the introduction of financing to more non-prime consumers. After a thorough review of the market, PayBright was an obvious partner. They have built an industry-leading platform, including the first integrated payment solution for e-commerce sales in Canada, and have been providing financing to customers of major brands such as Wayfair, Samsung, Casper, Endy, Peloton, Lenovo, Steve Madden, eBay and more. Our strategic partnership and investment in PayBright will help accelerate their growth and allow us to play an active role in the rapidly growing point-of-sale installment payments market, while leveraging their capabilities in this important distribution channel.”
“Our partnership and technology integration with goeasy will maximize the number of Canadian consumers eligible for our payment plans and help our merchants drive sales through exceptional approval rates and increased conversion at checkout,” said Wayne Pommen, PayBright’s President and Chief Executive Officer. “goeasy has proven to be a leader in the non-prime lending market and is an ideal partner for our platform. We also share a common view that Canadians don’t need more credit cards, and that simple, transparent installment plans are the best way for consumers to buy now and pay later for the things they want and need.” Pommen continued, “Using the shortest and easiest digital application available in Canada, consumers shopping online or in-store receive an instant credit decision. In a single, seamless experience, prime consumers will benefit from a payment plan offered by PayBright, while customers not approved by PayBright will instantly be evaluated for an installment product from goeasy’s lending division, easyfinancial. We also welcome goeasy as a strategic investor in our business and look forward to working with them as a long-term partner.”