How YouLend partnered with Paysafe to launch a Merchant Cash Advance Solution in the US
In 2023, YouLend partnered with Paysafe, a leading payments platform, to launch a market-leading financing solution to a targeted segment of their US customers and enhance their relationship with their merchants.
Although Paysafe was already providing its customers with a comprehensive payment solution on a global scale, the company sought to address additional issues for its merchant base. Namely, how could they enable merchants to access flexible capital sources to smooth out cash flow and grow their business?
To help address this, Paysafe decided to venture into embedded finance with YouLend; launching a new Merchant Cash Advance Solution that could deliver rapid time-to-market and instant scale.*
“Merchants are constantly facing new challenges in the market – embedded financing gives us the opportunity to support them when they need it most, providing the peace of mind and practical liquidity to adapt to real-world business challenges.’” - Yoon Choi, Senior Director, Banking Relationships, Americas at Paysafe
Mission: Improving the payments value proposition
While Merchant Cash Advance was a clear choice to elevate the value proposition for their merchants, developing this capability in-house presented challenges for Paysafe, such as:
● Building new infrastructure to manage the financing journey for merchants.
● Integrating systems with existing data and insights to provide an exceptional customer experience.
● Offering business funding in a compliant, secure and risk-managed fashion.
● Managing the implementation process to help control timelines, costs and risk, getting a solution to market quickly to support merchants.
Facing these challenges, Paysafe decided to look for a partner who could provide a toolkit that would enable Paysafe to go live with the Merchant Cash Advance Solution quickly and with little to no development effort.
Solution: Best-in-class, tech-first financing
Paysafe decided to partner with YouLend and leverage the platform’s market-leading financing infrastructure to layer on top of its existing payments capabilities.
YouLend had the advantage of already being a globally recognized product, operating in 10+ countries with strong success in the US. Key to the partnership for Paysafe was the ability to move quickly and efficiently: YouLend offered a referral solution that could go live quickly.
"At Paysafe, we strive to ensure an exceptional customer experience for our merchants, so finding a provider who would provide great service and a great experience to our merchants was very important. YouLend’s referral solution was a great match to our needs." – Yoon Choi, Senior Director, Banking Relationships, Americas at Paysafe.
Results: Improving the value for merchants
Today, Paysafe can offer targeted merchants flexible funding options, using transaction volume-based finance and YouLend’s robust risk-management and underwriting capabilities to offer tailored financing options to merchants with manageable repayment schedules.
YouLend provided Paysafe with a seamless customer journey that made it easy for their merchants to apply with YouLend and receive funding in as little as 24hrs in some instances.
Working with YouLend provided several key advantages for Paysafe:
● Time to market: Taking a solution live in minimal time with no development costs required.
● Rate optimisation: Using YouLend’s network of finance providers, merchants could be offered competitive rates and volumes from day one without needing to risk their own capital.
● Instant scale: YouLend could instantly offer the technological capacity, network and financing workflow required to serve Paysafe’s wide network of merchants in the US with a tailored, seamless experience.
Moving forward, YouLend and Paysafe aim to offer more products to their merchants, with the goal of becoming a market leader in the embedded finance market for merchants in the US.
*This program is offered by YouLend. YouLend financing under this program is not a loan. Paysafe is not providing a merchant funds in exchange for a merchant’s card receivables and does not determine a merchant’s eligibility under the program or make a decision regarding a merchant’s application, enable the delivery of funds or support repayments under the program; such functions are performed entirely by YouLend in conjunction with its applicable bank partner.