European BNPL Provider Scalapay Raises Nearly $500M

Scalapay, a European buy now, pay later (BNPL) provider, has raised $497 million in Series B funding, a press release said, along with debuting its Magic program, which it says will add more functions to help merchants make payment easier.

Scalapay works with eCommerce merchants and offers BNPL plans with no interest.

The release says there are three BNPL options: paying in three or four installments, or entirely after 14 days.

Scalapay said Magic will relieve burdens on the checkout experience for customers and “solve the most painful areas” for merchants, the release said.

“With interest-free installments, we transformed one of the most frustrating parts of the shopping experience, the payment, into something pleasurable,” said Simone Mancini, co-founder and CEO of Scalapay. “Now with Magic, we are going one step further and helping European merchants transform their entire checkout experience.”

Meanwhile Johnny Mitrevski, chief technology officer and fellow co-founder,  said this was an “incredible opportunity for Magic to redefine European eCommerce, which has a lesser reputation compared to its U.S. peers.”

He said Magic cuts friction points and other reasons shoppers abandon their carts, including “signup or login, shipping, payment selection, and privacy consents,” the release said.

Read more: European BNPL Firm Scalapay Raises $155M

Scalapay also raised $155 million last year, saying that the funding round would help it expand its team and operations.

Scalapay was founded in 2019 by Mancini and Mitrevski, and has operations going throughout Europe now, including in Italy, France, Germany, Spain, Portugal, Finland, Belgium, the Netherlands and Austria.

Mancini said the idea behind the company was “giving customers the ability to enjoy the small pleasures in life without needing to compromise.” He said it was important now because of the way the pandemic has roiled the economy and caused people to reprioritize what was important to them.

“We want to bring the Italian concept of ‘dolce vita’ and slowing down to enjoy the small things in life to the rest of the world, via our partners,” he said, PYMNTS wrote.