Visa has made a strategic investment in Israeli financial tech startup ChargeAfter and the two will partner to provide Visa cardholders with more payment choices and flexibility, the Israeli company announced on Wednesday.
The sum of the investment was not disclosed.
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Founded in 2017, ChargeAfter developed a point-of-sale financing platform that empowers retailers to offer consumers personalized financing options at checkout from multiple lenders. The company has offices in Tel Aviv, New York, and Sunnyvale, CA.
The investment and partnership came months after ChargeAfter participated in a collaboration project with Visa through the latter’s Visa Innovation Studio in Tel Aviv. The studio was set up in 2018 as a shared space for the US multinational corporation to tap into Israel’s fintech ecosystem.
As part of the partnership with ChargeAfter, Visa’s network of sellers, acquirers and issuing banks will have the option to distribute a broad range of point-of-sale financing and credit instruments to online and in-store clients worldwide using ChargeAfter’s platform. The collaboration will also enable Visa’s global network of issuing banks to participate in ChargeAfter’s network as direct lenders.
“By combining ChargeAfter’s financing platform with Visa’s global reach, we have created one of the largest networks of global Point-of-Sale Financing,” said ChargeAfter CEO Meidad Sharon in a company statement. “We are very excited about the new collaboration and investment. Visa and ChargeAfter share a common vision to make payments quick, convenient, safe and accessible.
“As part of the continued effort to democratize credit, we’re placing the power of payment options and flexibility in payments back into the hands of the consumer. We are creating the next wave of credit,” he added.
“Consumers increasingly demand more choice and flexibility when making a payment, whether for their everyday needs or high-value items,” said Shahar Friedman, head of Visa Innovation Studio Tel Aviv. “Working with ChargeAfter, we aim to make it easier for sellers and financial institutions to offer a range of tailored, personalized financing options at the point-of-sale, allowing consumers to manage their payments in a way that works for them.”
This is Visa’s second investment in an Israeli company. In 2018, Visa invested in Israeli startup Behalf, which offers short-term financing with flexible repayment terms to US-based businesses. The company pays vendors directly on behalf of their small business clients for the purchase of goods or services.