Kabbage powers Alibaba’s pay later payments programme
Pay Later allows customers to obtain up to $150,000 of financing for their orders, aiming to improve cash flow and make commerce more accessible to SMEs.
“Financing at the point of sale requires a fully automated solution that can handle the immense volume of daily transactions that occur on Alibaba.com,” says Kabbage CEO Rob Frohwein.
“We recognised an opportunity to give our customers a convenient financing solution that allows them to improve their cash flow at competitive rates, so they can have the cash they need to grow their businesses,” adds John Caplan, head of Alibaba B2B in North America.
To apply, small businesses connect their verified business data (bank account or other) for a paperless funding decision during the checkout process. Each purchase financed via Pay Later creates a six-month term loan with rates starting at 1.25% per month, with no extra fees, according to the firm.
The programme launched in beta in June 2018, and 68% of users said Pay Later has allowed them to increase order sizes on the site.