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October 26, 2022

Tymit remains a fintech to watch but cracking the BNPL sector has never been harder

By Douglas Blakey

Tymit remains one of the more interesting UK fintechs to watch. Launched in late 2019, it targeted the credit card sector with claims to be on a mission to reinvent credit by making it more flexible, safer and fairer, giving customers the ability to choose which purchases carry interest and select their own instalment-based repayment plans. By doing away with revolving balances and minimum payments, app-based Tymit offers cardholders total transparency over what they owe and the power to plan the way they pay.

That, then was the pitch. Tymit claims it can save borrowers a significant amount of money compared with traditional credit cards.

With Tymit cardholders can separate everyday transactions that they can afford to pay back each month versus big-ticket items for which they want to pay via instalments.

Now Tymit is back in the news, raising £23m in Series A funding, led by retailers Frasers Group, to ‘reimagine BNPL market for merchants.’

Frasers Group’s founder, Mike Ashley, has previous for being known to like a punt and in the current climate, anything BNPL-related definitely represents a risky investment.

Tymit says it will use the funding to accelerate its product development and support the launch of its market disrupting B2B2C instalment programme proposition for merchants. Moreover, it will provide all the benefits of Buy-Now-Pay-Later under merchants’ own brand for free and the ability to strengthen their customer relationships through data-driven insights and loyalty.

Tymit aims to mainly make its money through lending and through interchange fees through its payments service. However, it also aims to make money from late fees. The optimism of Robustiano Tubio, CFO at Tymit, in an interview this week with sister site Verdict, is to be admired. I would venture to suggest however, that an additional funding round or two might be a safe bet, given the current state of the UK economy in general and the BNPL sector in particular.

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