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Kreditech Launches Online POS Financing Solution

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Consumer financing company Kreditech announced a new business line today. In an effort to empower underbanked individuals, the company launched a new POS financing solution called Monedo Now. It gives online shoppers more payment flexibility with instant financing of up to $5,550 (€5,000) for up to 36 months at rates comparable to local banks.

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The first partner to go live with the solution is PayU Global, a payment services provider who recently launched a beta test with one of its merchant clients. Kreditech plans to expand the service. Alexander Graubner-Müller, CEO and co-founder said, “We are already in talks with further clients in the e-commerce, travel and other online sectors and look forward to providing our innovative technology as an online payment method in the checkout process.”

Screen Shot 2016-06-29 at 10.42.45 AMKreditech’s Sebastian Diemer and Alexander Graubner-Müller, presenters at FinovateSpring 2014.

Monedo Now uses Kreditech’s credit-scoring technology which underwrites risk on thin-file credit clients. At FinovateSpring 2014, the company showed off its algorithm that provides a risk score of the customer by studying their financial situation at the time of their application without pulling in historical data. Kreditech uses 20,000 data points, updated every minute, to offer 24/7 access to credit decisioning for anyone in 35 seconds.

Kreditech plans further integrations with companies using its Credit-as-a-Service API which offers support for financing more than just physical goods at the POS. The company will support financing for online services and travel purchases as well as direct integrations with online wallets, prepaid cards and bank offerings.

In March, Kreditech closed a $103 million Series C funding round from contributors such as World Bank Group’s International Finance Corporation, Blumberg Capital, and Peter Thiel. That round boosted the company’s total funding to $151 million.