Lady paying for services using her mobile phone

Pepper Advantage enters retail and elective healthcare sectors to support merchants that offer point of sale credit

London - Pepper Advantage moves into fast-growing point of sale consumer credit market; provides full credit and loan portfolio services to retailers and health care companies looking to drive growth by offering direct point of sale and Buy Now Pay Later payment options.

Pepper Advantage, a global credit intelligence company, announced its entrance into the retail and elective healthcare sectors as it supports merchants that offer credit to customers at point of sale. Pepper Advantage will use its credit management expertise to provide an end-to-end loan portfolio and credit management service that includes support for consumer service merchants looking to sell their book of loans to investors.

Pepper Advantage’s entrance into this space marks the first time it has extended its credit intelligence services to consumer-facing retailers. The company’s expansion into the elective healthcare and retail industries is due to growing demand from merchants that are looking to provide more direct point-of-sale credit as consumers shift to using BNPL for larger, discretionary and non-discretionary purchases, including healthcare and dental services.

According to a report by McKinsey, larger ticket BNPL is a fast-growing sector, with 10-15% compound annual growth. Average ticket prices are USD2,000-10,000 and are usually caried out by sector specialists, such as retailers and elective healthcare and beauty services providers. By working with Pepper Advantage on the sale and management of their credit and loan portfolios, firms in these industries can scale their BNPL offerings, increase protection from default risk, and significantly improve cash flow, allowing them to invest in customer acquisition and expand their client base.

Pepper Advantage’s first BNPL client, one of the largest Japanese personal beauty companies, is already live. The firm selected Pepper Advantage to lead the successful sale and management of a key portion of its merchant finance portfolio of customer loans, helping it to scale its BNPL offering. In addition to providing credit servicing to both the merchant and senior investor in this loan portfolio, Pepper Advantage invested as the junior equity partner as part of its bespoke credit investment strategy. The company’s investment reflects the opportunity in the Japanese market, where the overall BNPL sector is growing and is expected to top USD10 billion this year according to the Yano Research Institute.

“This launch marks a strategic step forward into the retail and consumer services industry for Pepper Advantage,” said Fraser Gemmell, CEO, Pepper Advantage. “We see demand in multiple markets as a new class of merchants is looking to offer more flexible payment plans, both long and short term, at higher price points that go beyond the traditional BNPL model. Bringing our credit management capabilities, advanced data and analytics platform, and operational expertise into this market allows us to solve a real challenge for consumer companies that need the back-end loan management systems to support this new financing.”


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