FlexShopper Partners with Terrace Finance to Expand Merchant Opportunities

Rhea-AI Summary

FlexShopper (NASDAQ: FPAY) has partnered with Terrace Finance to expand its lease-to-own (LTO) services to over 800 retail merchant locations. The collaboration integrates FlexShopper's LTO solutions into Terrace Finance's multi-provider platform, enhancing payment options for underserved consumers. Key highlights include:

- Over $4.6 million in approved fundings during Q2 2024
- Expected addition of 500 more retail locations by end of 2024
- Launch of Spanish language payment solution
- Seamless integration with brick-and-mortar, point-of-sale, and eCommerce platforms

This partnership aims to expand conversion rates, increase repeat purchases, and drive growth for both companies in 2024 and beyond.

Positive

• Partnership with Terrace Finance expands FlexShopper's LTO services to over 800 retail locations
• Approved fundings of over $4.6 million in Q2 2024
• Expected addition of 500 more retail locations by end of 2024
• Launch of Spanish language payment solution to better serve applicants and merchants
• Integration with brick-and-mortar, point-of-sale, and eCommerce platforms

Negative

• None.

Financial Analyst

FlexShopper's partnership with Terrace Finance marks a significant expansion in the company's merchant network and potential revenue streams. The integration of FlexShopper's lease-to-own (LTO) services into Terrace Finance's platform has already resulted in over $4.6 million in approved fundings in Q2 2024. This collaboration not only increases FlexShopper's market reach but also diversifies its revenue sources.

The expansion to over 800 merchant locations, with an additional 500 expected by year-end, signals strong growth potential. The introduction of Spanish language options further broadens the addressable market. However, investors should note that while approved fundings are promising, actual conversion rates and revenue recognition will be important metrics to watch in upcoming financial reports.

This strategic move aligns with the growing trend of alternative payment solutions in retail, positioning FlexShopper to capitalize on the increasing demand for flexible payment options among underserved consumers.

Market Research Analyst

The partnership between FlexShopper and Terrace Finance taps into a growing market trend of diversified payment solutions. This move is particularly significant as it addresses the needs of underserved consumers, a segment often overlooked by traditional financial institutions. The expansion to Spanish language services is a smart strategic decision, potentially opening up a vast Hispanic market in the US.

The multi-lender platform approach is gaining traction in the fintech sector, as it allows for more comprehensive consumer coverage and increased approval rates. This model could give FlexShopper a competitive edge in the lease-to-own market. However, the success of this venture will largely depend on consumer adoption rates and the ability to maintain low default rates in a potentially higher-risk customer segment.

Investors should monitor key performance indicators such as customer acquisition costs, average transaction value and repeat purchase rates to gauge the long-term viability and profitability of this expanded offering.

Over 800 merchant locations now offering FlexShopper’s LTO product through Terrace Finance’s multi-lender platform

FlexShopper and Terrace Finance launch Spanish language payment solution to better serve applicants and merchant partners

BOCA RATON, Fla., Aug. 26, 2024 (GLOBE NEWSWIRE) -- FlexShopper, Inc. (Nasdaq: FPAY), a prominent national online lease-to-own retailer and payment solutions provider, announces a partnership with Terrace Finance Corp, one of the most diverse financing waterfall platforms. The relationship integrates FlexShopper’s robust lease-to-own (LTO) services into Terrace Finance’s multi-provider platform, enhancing consumer payment solution options for over 800 retail merchant locations at the end of the second quarter of 2024 with another 500 retail locations expected by the end of 2024. During the second quarter of 2024, applicants were approved for over $4.6 million of fundings.

FlexShopper specializes in providing flexible LTO solutions tailored for underserved consumers and retail merchants across various sectors. By integrating FlexShopper’s LTO services, Terrace Finance further expands its payment offerings to include FlexShopper’s current and future financing options. These solutions are seamlessly integrated into a merchant’s brick and mortar, point-of-sale systems and eCommerce platforms. By providing additional payment solutions, merchant partners are positioned to expand conversion, and increase repeat purchases.

"I am excited to announce our partnership with Terrace Finance, as more and more merchants look for partners to provide expanded payment solutions to their customers," said Russ Heiser, CEO at FlexShopper. "Our partnership with Terrace Finance provides unique opportunities that align with our mission of providing flexible payment options for consumers.”

Mr. Heiser continued, “Terrace Finance’s commitment to support multiple vertical markets is helping expand FlexShopper’s payment solutions to more merchants. Our full integration with Terrace’s platform along with our instant LTO decision-making system has improved the customer experience. We expect our partnership with Terrace Finance and the addition of Spanish language options to support our growth in 2024 and beyond."

Terrace Finance provides merchants with a simple way to deploy multiple payment solutions, enabling more customer sales and increasing average ticket values. Terrace Finance supports the entire financing needs of its merchant partners, providing both commercial and consumer solutions, including options to fund merchant partners to help them grow their own business. Terrace Finance prides itself on providing customers with outstanding customer service with live agents available seven days a week.

"As a leading digitally enabled LTO provider, FlexShopper is uniquely positioned to provide payment solutions within the Terrace Finance platform," said Andy Hopkins, CEO of Terrace Finance. "We now provide our merchants with an expanded payment waterfall, driving additional sales opportunities and providing enhanced offerings to consumers. By continuing to work in close partnership there are limitless opportunities to be mutually successful, while providing better solutions for our merchants and applicants."

Robin Eitel, SVP of Sales & Marketing at Terrace Finance continued, “I am thrilled to announce the launch of our joint Spanish language capabilities. This is certain to increase the access to payment solutions for more underserved consumers. This, combined with our shared initiatives, provides our partnership with extensive near-term growth opportunities.”

If you are a merchant interested in offering FlexShopper’s LTO solution through the Terrace Finance platform, please contact sales@terracefinance.com or sign up at terracefinance.com/merchant-sign-up.

About Terrace Finance Corp:
Terrace Finance offers a robust series of financial waterfalls servicing its merchant partners and their commercial and consumer customers. The technology supports brick-and-mortar, point-of-sale, and eCommerce integrations. Today Terrace Finance services over 4,000 retailers with financial solutions. Terrace Finance enhances their integration with merchants by handling the full lifecycle of the applicants, from origination through funding. More information can be found at terracefinance.com on our programs and solutions.

About FlexShopper, Inc.:

FlexShopper, Inc. is a leading national financial technology company that provides payment options to consumers. FlexShopper provides a variety of flexible funding options for underserved consumers through its online direct to consumer marketplace at Flexshopper.com and in partnership with merchants both online as well as at brick-and-mortar locations. FlexShopper’s solutions are designed to meet the needs of a wide range of consumer segments via lease-to-own and lending products.

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. 2024 GlobeNewswire, Inc.

FAQ

What is the new partnership announced by FlexShopper (FPAY)?

FlexShopper (FPAY) has announced a partnership with Terrace Finance to expand its lease-to-own (LTO) services to over 800 retail merchant locations, integrating FlexShopper's LTO solutions into Terrace Finance's multi-provider platform.

How many retail locations are expected to offer FlexShopper's (FPAY) LTO product by the end of 2024?

By the end of 2024, FlexShopper (FPAY) expects to have its LTO product offered at over 1,300 retail locations, with 800 current locations and an additional 500 expected to be added.

What was the value of approved fundings for FlexShopper (FPAY) in Q2 2024?

During the second quarter of 2024, applicants were approved for over $4.6 million of fundings through FlexShopper's (FPAY) partnership with Terrace Finance.

What new language capability has FlexShopper (FPAY) introduced with Terrace Finance?

FlexShopper (FPAY) and Terrace Finance have launched a Spanish language payment solution to better serve applicants and merchant partners, expanding access to payment solutions for underserved consumers.