Fintech Kashish wants financially stressed customers to say ‘goodbye’ to BNPL – Meczyki.Net

Buy now, pay later (BNPL) products have become incredibly popular among users, and both startups and tech giants like Apple have taken notice. But BNPL companies have also attracted some controversy for encouraging those who are less financially secure to take loans without fully explaining the associated risks.

kashish, a fintech startup that is less than two years old, today came out of stealth with a product whose founders say it could benefit consumers by offering the same flexibility as BNPL, but without taking out loans. Co-founder and CEO Sam Miller told Meczyki.Net that the company’s core product is a web browser extension that allows customers shopping online to stream their payments in several combinations of debit, credit and gift cards without paying fees or interest. gives.

“You are using your existing credits and your existing debits to actually facilitate the transaction, not to go through a credit bridge and underwrite a loan that you do not fully understand.” And then buying the same item and paying the money back in six to 12 months,” Miller said.

The platform launched in private beta mode in January and has already brokered over $10 million in user transactions and purchases, according to the company. Miller said that number has steadily doubled each month since launch.

Kashish targets two main types of customers, Miller said. The first group is “paycheck-to-paycheck” consumers who use the platform as a budgeting tool to avoid overdrafting their cards or overusing their credit. The second bucket, he said, is a customer who “has and wants 10 credit cards”.[s] Every card must be top-of-wallet.” Those customers, for example, can also use Kashish to split purchases with friends. Miller said the company deliberately hasn’t gone after those users yet because Although the technology supports shared purchases, the company is still in such an early stage that it hasn’t built up the capacity on its customer support team to handle inquiries from multiple people in a single transaction.

In addition to its public launch, Kashish also announced that it has raised $5.5 million in seed funding from institutional and celebrity angel investors. VC firms Tribe Capital, Anthemis and Courtside Ventures participated in the round, along with NFL player Odell Beckham Jr., investor Sahil Bloom and actor Robin Wright.

The company is able to offer its product to users at no cost because it makes money from MasterCard interchange fees, which helps Kashish to issue single-use cards on behalf of users for completing each purchase. . That single-use card, Miller explained, pulls from the customer’s desired funding sources and allows the customer to choose how much money to use from each source when making a purchase. For Mastercard, he said, the value proposition makes more sense than for BNPL, as Kashish’s average order value per customer is “over $1,800” compared to the average BNPL purchase, which happens to be much smaller.

Sam Miller, Kashish Co-Founder and CEO image credit: kashish

Eventually, Kashish plans to develop its technology so that users can use the same card in multiple transactions instead of having to create a new single-use card each time, Miller said. Miller plans to grow the Kashish team, currently 12 people, by recruiting heavily for product and customer success roles.

The company says it is also focused on security and keeping customer information confidential. Kashish partnered with Stripe and Plaid to process transactions so the company doesn’t store any credit card information on its own servers, co-founder and CTO Kevin Kim told Meczyki.Net.

“We are big believers in the anonymous component of transactions. I compare the day to the day when there was always one person in the grocery store line who had to write a check at the grocery store check out, and It’s the stigma that went with it. For this reason, we don’t, we don’t cherry-pick. Everyone is seen exactly the same – no matter the geographic location, demographic information, which cards you link. none of that matters to us,” CEO Miller said.

While Kashish is serving many of the same consumers as BNPL, Miller is confident that its product is different.

“We see the entire fintech world as one huge competition,” Miller said. “I think alternative financing at checkout is the category we fall into, and that includes BNPL, which includes traditional forms of payment like credit and debit, it includes crypto, but. I think that’s what we’re doing. We have no direct competition in that sense … point of purchase.”