PayTomorrow Integrates Katapult into Its Waterfall Application Process
Katapult Holdings, Inc. (NASDAQ: KPLT) has announced a strategic partnership with PayTomorrow, , integrating Katapult's lease-to-own (LTO) option into PayTomorrow's waterfall financing platform. This collaboration aims to provide consumers with more flexible payment options and help merchants expand their customer base.
Key points:
- PayTomorrow's platform serves over 2,700 merchant partners across multiple categories
- Katapult's LTO solution targets nonprime consumers who may not qualify for traditional financing
- The partnership is expected to drive incremental sales, higher conversion rates, and increased repeat purchases for merchants
- Extreme Customs, a merchant using both Katapult and PayTomorrow, reports positive results from offering multiple payment options
- Strategic partnership with PayTomorrow expands Katapult's reach to new merchants and consumers
- Integration into PayTomorrow's platform with 2,700+ merchant partners across multiple categories
- Potential for increased sales and customer base for merchants using the integrated LTO option
- No merchant recourse from customer defaults or interchange costs related to transactions
- None.
The integration of Katapult’s lease-to-own (LTO) option into PayTomorrow's financing platform stands to offer several financial benefits for merchants and investors. Merchants gain access to a broader customer base, especially those in the nonprime segment who cannot access traditional credit. This is likely to increase sales and decrease cart abandonment rates, driving higher conversion rates. Moreover, the absence of interchange costs and merchant recourse from customer defaults mitigates financial risk for merchants.
For investors, these developments suggest potential growth for both companies. As more merchants adopt the platform, Katapult’s revenue could increase due to higher transaction volumes. However, it is important to consider potential drawbacks, such as the risks associated with leasing to nonprime consumers, which might include higher default rates.
In the long term, the partnership could solidify Katapult's position in the LTO market, making it a key player. The strategic move aligns with industry trends towards offering more flexible payment solutions, which could enhance customer loyalty and repeat sales.
This partnership could significantly impact the e-commerce and retail sector by bridging the gap for nonprime consumers who face barriers to traditional financing. By offering a lease-to-own option, PayTomorrow and Katapult tap into a market segment that is often overlooked. This integration could lead to improved customer satisfaction and retention, as consumers gain access to durable goods they might otherwise be unable to afford.
From a broader market perspective, this move reflects the growing trend of embedded finance, where financial services are integrated into non-financial platforms. Businesses leveraging this trend can offer more tailored solutions to their customers, potentially leading to increased market penetration and user engagement. The success of this partnership could pave the way for similar collaborations, further disrupting traditional finance models.
Partners with Katapult to Unlock Financial Power for Consumers
PLANO, Texas, July 16, 2024 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (NASDAQ: KPLT), an e-commerce-focused financial technology company, today announced a strategic partnership with PayTomorrow, LLC, a premier waterfall financing platform. Through this partnership, PayTomorrow has integrated Katapult's unique, customer-centric lease-to-own (LTO) option into PayTomorrow's suite of financial products, providing consumers with greater flexibility and choice.
This integration embeds Katapult’s innovative LTO within PayTomorrow's platform. PayTomorrow’s platform provides merchants with a diverse range of payment options that serve prime, near prime and nonprime consumers. With more than 2,700 merchant partners across multiple categories including automotive, appliances, computers/electronics, and fitness equipment, PayTomorrow seamlessly integrates into merchant point-of-sales systems and ecommerce shopping carts, which simplifies how consumers access financing options, including lease-to-own. The platform adapts to both online and in-store environments, allowing consumers to choose the payment solution and shopping method that best fits their budgets and preferences. Katapult is excited to partner with PayTomorrow, expanding access to its innovative LTO payment solution for both merchants and consumers.
Through this integration, merchants on PayTomorrow’s platform are able to leverage Katapult's scalable, omnichannel LTO solution to reach a new consumer base who previously may not have qualified for traditional financing to purchase durable goods. A partnership with Katapult unlocks a range of benefits for merchants, including:
- Merchants have access to new shoppers who can drive incremental sales
- Higher conversion rates and lower cart abandonment
- Opportunities to drive repeat customer purchase rates higher
- No merchant recourse from customer defaults
- No interchange costs to the merchant related to transactions
- No risks from out-of-window returns
"We're thrilled to integrate Katapult's innovative solution into our platform," said Tony Amitrano, Chief Revenue Officer of PayTomorrow. "We believe they offer a best-in-class LTO product that will help merchants expand their consumer reach. By providing nonprime consumers with a path to purchasing the durable goods they need, the Katapult LTO allows merchants to tap into this underserved consumer base. In addition, Katapult’s LTO aligns with our mission to make financing simple and accessible for all consumers.”
"Katapult has been instrumental in driving sales and expanding our customer base because we can offer their transparent LTO payment option at checkout," said Tyler Reilly, Owner of Extreme Customs, a merchant that has a direct integration with Katapult and is on the PayTomorrow platform. "Katapult’s new partnership with PayTomorrow should unlock even more value for Extreme Customs because we can now offer additional payment choices to consumers. Whether they choose the LTO checkout payment option or proceed through a waterfall application, we believe we are broadening the purchase options for our nonprime customers. By offering both channels, we provide a smooth and convenient payment experience for all our customers, regardless of their credit profile.”
Orlando Zayas, CEO of Katapult, added, "Joining PayTomorrow's waterfall application ecosystem means their merchant partners can tap into an underserved consumer segment, which should translate to new, loyal customers and incremental revenue. Our relationship with Extreme Customs showcases that having a direct LTO option as well as a waterfall process can fill a meaningful gap for consumers. We’re excited to expand our reach to more consumers through this partnership, democratizing access to durable goods for nonprime consumers who may face barriers to accessing traditional financing. We look forward to unlocking new growth opportunities for PayTomorrow, their merchants and Katapult.”
If you are a merchant interested in PayTomorrow’s platform or offering Katapult’s LTO solution through a broad option of integrations including in-store, online and via Katapult Pay™, to boost your business and customer base, please contact sales@katapult.com. Consumers interested in unlocking financial purchasing power through personalized lease-to-own plans can download our app in the Apple App Store or Google Play. For more information on our LTO offering, consumers can also visit our website.
About Katapult
Katapult is a technology driven lease-to-own platform that integrates with omnichannel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. nonprime consumers. Through our point-of-sale (POS) integrations and innovative mobile app featuring Katapult Pay™, consumers who may be unable to access traditional financing can shop a growing network of merchant partners. Our process is simple, fast, and transparent. We believe that seeing the good in people is good for business, humanizing the way underserved consumers get the things they need with payment solutions based on fairness and dignity. For more information on Katapult, visit www.katapult.com.
Katapult’s LTO solution provides significant benefits to consumers including:
- Customers understand the full cost of the product ownership up-front. There are no surprise fees or compounding interest payments. In fact, there are no late fees, ever.
- No long-term obligations for the customer – they can either make recurring payments toward owning the purchase outright or return it at any time.
- Financial flexibility that can make an LTO purchase more attractive and accessible than traditional financing.
About PayTomorrow
PayTomorrow is a trusted financial waterfall provider enabling businesses, both in-store and online, to provide consumers with multiple financing and flexible payment solutions through a single application at the point of sale. PayTomorrow’s unique technology aligns lenders with customers, ensuring customers receive the best available offer based on that specific customer’s credit profile, helping customers access financing and helping merchants maximize sales. PayTomorrow integrates into most off-the-shelf eCommerce platforms, custom platforms/shopping carts, in-store POS systems and standalone applications. If you are a merchant interested in offering Katapult’s LTO solution through the PayTomorrow platform, please contact sales@paytomorrow.com.
Media Inquiries:
Jennifer Kull
ir@katapult.com
FAQ
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