Israeli fintech startup Jifiti Inc., which specializes in gift card and point-of-sale consumer financing, announced on Tuesday the expansion of its partnership with global payment company Mastercard.
Jifiti developed a technology to enable point of sale financing, allowing banks and retailers to offer immediate credit by using Mastercard. Jifiti’s technology provides a white label solution for banks allowing them to compete with companies that provide point-of-sale loans.
The end-to-end solution works with any existing retail cash register or e-commerce system, eliminating the integration process between lenders and the merchant systems. The company is currently active in North America, Europe, and Africa, employs 40 people, and has so far raised $7.1 million in two financing rounds. Liberty Israel Venture Fund, Jesselson Capital, Schottenstein Stores, and Simon Property Group are counted among its investors.
Jifiti has already implemented its technology in U.S. and European banks such as Citizens Bank which provides loans for buyers in Apple and Microsoft stores and also for IKEA in Europe.
“The new partnership with Mastercard international will open up Mastercard’s entire banking and retail portfolio as part of the services Jifiti will offer,” Yaacov Martin, the company’s co-founder and CEO said. “The recipe for success in the retail world depends on the ability to launch and refine consumers’ shopping experience. We provide this recipe to the world of banking, retail and consumerism.”
According to Jifiti, point-of-sale financing is growing by 20% a year in the U.S. with similar growth rates found in Europe, Asia and Australia. Globally, it is predicted to grow to $2.52 trillion in 2022.
Retailers are able to capitalize on this consumer demand by simply and securely offering financing programs, benefiting from increased purchase completion, and reduced shopping cart abandonment (both in-store and online). Jifiti’s platform is fully integrated using Mastercard’s API technology, enabling lenders and retailers to easily upload their loan products which are then displayed to the customer at the point of sale. And through Jifiti’s zero-integration solution retailers can implement programs with minimal IT resources or systems integration.
“Mastercard is creating a future where payments keep pace with the way we live, work, and do business. We are constantly working to provide responsible options for consumers in how they manage their finances and spend while providing more flexibility, control, and transparency,” said Zahir Khoja, Executive Vice President, Merchant Solutions and Partnerships, Mastercard. “Our work with Jifiti and the wider consumer financing ecosystem continues to accelerate as we deliver innovative solutions and credit options in the moment consumers are seeking them.”