FinTech Sunbit gets $250 million in funding
FinTech Sunbit is looking to grow after receiving a $250 million investment.
The $250 million debt facility comes as consumers increasingly turn to new payment options such as buy now pay later (BNPL).
“Today, it’s clearer than ever that Americans need access to better options for how they pay for the things they need,” Sunbit CEO Arad Levertov said in a press release Monday (December 5). “We are committed to helping more merchants build their businesses and consumers pay for non-discretionary spending.”
The company says the debt facility provides more diversification to its funding sources and supports the growth of its points of sale and Sunbit card. Sunbit will use the debt facility to scale its distribution network “and serve the millions of Americans who need equitable financial access for daily needs,” the release said.
Among the companies approaching Sunbit to offer financing are the country’s dental practices, the company announced last month. Sunbit technology can be found in more than 6,000 dental practices and in more than 550 dental support organizations (DSOs), with more than 500 new offices being added every month.
Such an offering is needed as millions of Americans are forced to choose between self-pay or declining essential care when faced with unexpected dental expenses, Sunbit’s vice president of dentistry Jay Letwat said at the time.
“Even patients with private dental insurance face coverage caps, which almost guarantee that any significant treatment will also require a hefty out-of-pocket cost,” Letwat said.
Meanwhile, recent research from PYMNTS and Nuvei finds that 52% of consumers tried a new payment option last year.
Our data shows that digital wallets are the biggest winners here, as 59% of consumers who adopted new payment methods started using this option. Look a little closer and we see that nearly 53% have adopted credit, debit or store cards, while another 11% of respondents have given BNPL a shot.
Dig even deeper, “and it becomes clear that the consumers most entrenched in the paycheck-to-paycheck economy — representing more than 60% of us here in the U.S. — are those using BNPL and cards,” PYMNTS wrote.
Our survey found that more than half of respondents earning less than $100,000 use these payment channels, with 11% leveraging BNPL.
How consumers pay online with stored credentials
Convenience prompts some consumers to store their payment information with merchants, while security concerns give other customers pause. For “How We Pay Digitally: Stored Credentials Edition,” a collaboration with Amazon Web Services, PYMNTS surveyed 2,102 U.S. consumers to analyze the consumer dilemma and reveal how merchants can win over holdouts.
