Keo World, the BNPL FinTech, has announced a seven-year credit facility of up to $500 million from Hayfin Capital Management, an asset management firm, according to a press release.
The investment serves to strengthen the purchasing power of SMEs.
Keo was founded in 2020. The platform issues Keo American Express virtual cards and lines of credit with a fast digital approval process for smaller businesses.
If retailers want to offer BNPL for B2B to their customers, they can do so “instantly” and without integration – although they have to accept payments via American Express.
“We are excited about this financing agreement, which will allow us to expand the reach of our B2B delivery finance program to companies across Mexico,” said Paolo Fidanza, Founder and CEO of Keo. “In a market where less than 12% of all traditional lending is to SMEs, our Workeo product allows business buyers to access key inventory on credit and suppliers to increase their recurring sales. Our product improves working capital management through a fully digital, frictionless and cost-effective inventory financing platform powered by the American Express network.”
In addition, Mario Luna, vice president of Global Network Partnership Latino América at American Express, said the SMB segment is important for building Mexico’s B2B payment ecosystem.
“This agreement allows for continued product development and expands our volume so we can continue to help these companies grow,” he said.
BNPL payments are growing in popularity across the financial spectrum — not just among those trying to save money, PYMNTS wrote.
Further information: Bank-issued BNPL rates lower all demographics
PYMNTS research shows that BNPL is becoming more and more popular among clients earning over $100,000 per year these days. Almost half of them, 47%, have expressed a desire for the system for their company.
The second-highest interest rates come from those earning between $50,000 and $100,000 a year, followed by those earning less than $50,000.