FlexShopper Forms Exclusive Lease-to-Own Partnership with United Wheels and Its Portfolio of Bicycle Brands, Including Huffy

Rhea-AI Summary

FlexShopper (Nasdaq: FPAY) has announced an exclusive strategic partnership with United Wheels, a global holding company managing bicycle brands including Huffy, Niner Bikes, Batch Bicycles, VAAST Bikes, and Buzz E-Bikes. The partnership, facilitated through PayPossible's financing platform, will integrate FlexShopper's lease-to-own (LTO) financing options across United Wheels' websites.

United Wheels ships over 5 million bicycles annually to more than 50 countries, generating approximately $1 billion in revenue yearly. FlexShopper has observed that offering LTO options increases sales by more than 10% for retailers. The partnership aims to drive higher online sales while providing consumers with flexible financing options, and FlexShopper will add United Wheels' entire product range to its LTO marketplace.

Positive

• Partnership with United Wheels, a company generating $1B in annual revenue
• Exclusive strategic agreement covering multiple premium bicycle brands
• Data shows LTO options increase partner sales by over 10%
• Expansion of product offerings on FlexShopper's marketplace

Negative

• None.

Insights

Financial Analyst

This strategic partnership marks a significant expansion for FlexShopper into the outdoor recreation market. The collaboration with United Wheels, a $1 billion revenue company shipping over 5 million bicycles annually, presents substantial revenue potential. The integration of FlexShopper's lease-to-own financing across United Wheels' portfolio of brands could drive meaningful growth, especially given FlexShopper's track record of increasing sales by more than 10% when implementing LTO options.

The partnership is particularly valuable as it's exclusive, giving FlexShopper a competitive advantage in the bicycle financing space. The addition of United Wheels' extensive product range to FlexShopper's marketplace should enhance customer acquisition and retention while diversifying revenue streams. This move aligns with FlexShopper's strategy to expand its retailer network and could significantly impact their financial performance, especially considering United Wheels' global reach across 50 countries.

Market Research Analyst

The timing of this partnership is strategic, capitalizing on the growing demand for alternative financing options in the consumer durables sector. The bicycle market has seen sustained growth, particularly in the e-bike segment, which presents a higher average transaction value. By partnering with United Wheels' diverse brand portfolio - from affordable Huffy bikes to premium Niner Bikes - FlexShopper can capture various market segments and price points.

The integration through PayPossible's platform streamlines the financing process, potentially reducing friction in consumer purchase decisions. This could be particularly impactful for higher-priced items like e-bikes and premium mountain bikes, where financing options often influence purchase decisions. The exclusive nature of the partnership provides FlexShopper with a significant competitive moat in the bicycle financing space.

FlexShopper Expands Retailer Partnerships with PayPossible

BOCA RATON, Fla., Dec. 04, 2024 (GLOBE NEWSWIRE) -- FlexShopper Inc. (Nasdaq: FPAY), a leading national lease-to-own (LTO) retailer and payment solutions provider, is excited to announce an exclusive strategic partnership with United Wheels Inc., a global holding company for a portfolio of outdoor brands, including Huffy, Niner Bikes, Batch Bicycles, VAAST Bikes, and Buzz E-Bikes. This partnership is made possible through FlexShopper’s growing relationship with PayPossible, a premier financing waterfall platform, which efficiently integrates FlexShopper’s financing options across United Wheels' family of websites.

Through competitive benchmarking, FlexShopper believes that offering lease-to-own options significantly increases sales for retailers focused on durable goods. In fact, FlexShopper has observed an increase of more than 10% in the balance of sale when LTO options are provided to its partners. This track record is a key driver for FlexShopper’s ongoing expansion of partnerships with prominent online and brick-and-mortar retailers that want to expand sales with credit underserved consumers.

United Wheels is a global leader in the outdoor industry, shipping over 5 million bicycles annually to more than 50 countries, generating approximately $1 billion in revenue each year. The company’s portfolio includes brands known for innovation, quality, and style, offering bicycles for every member of the family.

• Huffy, a household name in bicycles, has been synonymous with cycling fun since 1892.
• Batch Bicycles offers affordable, easy-to-assemble bikes for casual riders.
• Buzz E-Bikes provides mid-range electric bikes designed for comfort and ease.
• VAAST Bikes features cutting-edge SUPER MAGNESIUM™ technology for exceptional durability and performance.
• Niner Bikes revolutionized the mountain bike segment with its innovative designs, particularly focusing on 29-inch wheels.
  

By integrating FlexShopper’s LTO financing options across United Wheels’ e-commerce sites, the partnership is expected to drive higher online sales while providing consumers with seamless access to flexible financing. In addition, FlexShopper’s addition of the entire United Wheels product range to its LTO marketplace will offer even more choices for FlexShopper’s growing customer base.

“FlexShopper is thrilled to partner with PayPossible to enhance financing solutions across a broader retail network,” said Russ Heiser, CEO of FlexShopper. “The launch of our LTO services with United Wheels represents a major milestone in our mission to provide affordable payment options to customers nationwide. This expansion highlights our commitment to growing FlexShopper’s presence with both brick-and-mortar and online retailers and emphasizes the value we bring to consumers.”

Heiser continued, “By adding United Wheels’ inventory to our direct-to-consumer LTO marketplace at FlexShopper.com, we are giving our consumers even more options. This partnership exemplifies the power of the FlexShopper ecosystem, where accessible financing drives significant growth for manufacturers, while bringing their products to an even wider audience through FlexShopper’s platform.”

About PayPossible:
PayPossible is a leading financing waterfall provider, enabling businesses to offer consumers a variety of financing and flexible payment options through a single application at the point of sale. PayPossible’s technology connects consumers with the best financing offers for their unique credit profiles, optimizing the customer experience and boosting merchant sales.

About FlexShopper, Inc.:
FlexShopper Inc. (Nasdaq: FPAY) is a financial technology company specializing in lease-to-own (LTO) and lending solutions for underserved consumers across the U.S. FlexShopper provides flexible payment options through its direct marketplace at FlexShopper.com and partners with retailers across online and physical store locations.

Company Contact:
FlexShopper, Inc.
Investor Relations
ir@flexshopper.com

Investor and Media Contact
Andrew Berger
Managing Director
SM Berger & Company, Inc.
Tel (216) 464-6400
andrew@smberger.com

Source: FlexShopper, Inc.

FAQ

What brands are included in FlexShopper's partnership with United Wheels?

The partnership includes Huffy, Niner Bikes, Batch Bicycles, VAAST Bikes, and Buzz E-Bikes, all part of United Wheels' portfolio.

How much revenue does United Wheels generate annually?

United Wheels generates approximately $1 billion in revenue annually, shipping over 5 million bicycles to more than 50 countries.

What is the expected sales increase for FPAY partners using lease-to-own options?

According to FlexShopper's observations, partners offering lease-to-own options see an increase of more than 10% in their balance of sale.

How will FlexShopper (FPAY) integrate with United Wheels' business?

FlexShopper will integrate its lease-to-own financing options across United Wheels' e-commerce sites through PayPossible's financing platform and add United Wheels' products to its LTO marketplace.