Regulated, instantaneous, with no limit on amount or maturity.
These are three elements that Charles Egly, co-founder and CEO of the group at Credit Younitedsays he differentiates his company’s solution from that of former credit companies or buy now, pay later (BNPL) players operating in the region.
“It’s a credit [product] to buy electronics or other goods and it is always a regulated solution. So, in that sense, we are very different from BNPL providers who mostly offer unregulated solutions. [to consumers]Egly told PYMNTS in an interview.
Another feature that differentiates the Paris-based FinTech unicorn from BNPL players is the amount of credit disbursed. While the average amount of credit granted by BNPL companies is between 20 euros and 100 euros with short maturities ranging from a few weeks to a few months, he said that Younited can offer instant credit of up to 50,000 euros ($56,000) or more, with no limitation on maturities and a recovery period of one month to 84 months.
Egly added that the European instant credit provider also places a high value on responsible, ethical and transparent lending, using the revised Payment Services Directive (PSD2) regulations and application programming interfaces (APIs). open banking to ensure its data-driven offering is defined. at an amount that users can afford.
“With the login and password of your main bank account, we can retrieve your banking history [of up to 12 months and] this information will allow us to rate you precisely in two seconds. It’s the instant credit product we invented with virtually no amount or maturity limits,” Egly noted.
Thanks to PSD2 and open banking, even people who don’t have a typical profile or regular income can still be rated with only a month’s banking history, he said.
Related News: Instant Credit Provider Younited Expected to Hit $5.7 Billion GMV in 2022
To date, the French company, launched in 2009, has extended more than 2.4 billion euros ($2.69 billion) in credit and has seen its annualized revenue exceed 150 million euros ($168 million ) last year.
The company currently covers 60% of the European market with operations in four countries outside of France – Italy, Spain, Portugal and Germany – and plans to expand geographically to reach 80% of the regional market. by 2025.
Balanced B2C and B2B offers
From a business-to-consumer (B2C) offer, the European company has expanded into the business-to-business (B2B) space, integrating its solution into a range of third-party products through partnerships with banks such as German N26, French Fortuneo, FinTech companies like Lydia and Apple Premium Resellers.
“In 2021, [our B2B offering represented] between a quarter and a third of our GMV [Gross Merchandise Value] and revenue, and the idea is to have a very balanced model with 50% direct-to-consumer and 50% through partnerships,” he explained.
And now that Younited Credit has firmly found its product and market fit, Egly said its main objective is to achieve high growth rates and increase its presence in the markets in which it operates, while maintaining a strong reputation and brand.
“Good quality customer service is very important to us,” he said. “To date, we have a Trustpilot score of 4.8 and the idea is to maintain this score or even increase it, which is not easy when you grow quickly.”
Starting next year, the company is expected to expand its services to new markets, targeting a new country from a shortlist of countries, including the Netherlands, Austria, Poland, Romania and the United Kingdom. United in 2023, 2024, and 2025, respectively.
And no matter what market the firm is in, leveraging its European Central Bank (ECB) credit institution license to offer “regulated solutions” will be its top priority.
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