Zebit Goes Out to Provide No-Cost Funding to Underprivileged People; Secures $ 10 million in venture capital
LAS VEGAS, October 26, 2015 / PRNewswire / – Zebit, Inc. today launched the first fully automated payment system that provides interest-free credit to the 68 million Americans underserved by traditional financial services.[i] The company also announced 10 million dollars in the Series A venture capital financing. The capital increase provides Zebit working capital for receivables, operations and the expansion of its payment and e-commerce platforms. The funding round was led by Crosslink Capital and includes Wildcat Venture Partners, Leapfrog Ventures and Correlation Ventures.
76% of Americans live paycheck to paycheck.[ii] In addition, 47% cannot afford a $ 400 unexpected purchase, according to the Federal Reserve.[iii] Zebit was created to provide a superior credit alternative to the expensive and often confusing options, such as payday loans or hire purchase, frequently used by this underserved population. Zebit’s payment system provides working Americans with zero percent interest credit with no fees, penalties, or credit checks.
Credit can be used to make purchases on Zebit Market or directly from retailers who accept Zebit as a payment option. Within the Zebit Market, customers can fund thousands of quality branded products over time without paying interest. Currently, the Zebit Marketplace contains products from Panasonic, Samsung, Canon, Garmin, HP, LG Electronics, KitchenAid, Cuisinart, Hoover, Coleman and others, all of which are competitively priced, never above MSRP.
“Expensive life events happen, but people shouldn’t have to pay up to four times the retail price for what they need,” said Michael thiemann, co-founder and CEO of Zebit. “We are proud to bring zero percent financing to American workers underserved by traditional credit providers. We believe that give people access to free financial resources, as well as better options for shopping. life events will help them make healthier financial decisions. ”
Zebit solves financial stress that undermines employee productivity. About 15% of employees are stressed by bad financial decisions as it negatively impacts their productivity.[iv] By combining free financial education with access to free credit and reasonably priced products, Zebit offers employers a financial wellness benefit that can help reduce employee stress and nurture a workforce. stronger work.
As of today, the Zebit platform is available to participating employers with workforce ranging from 1,000 to over 100,000 employees; he is currently live with a $ 100 million electronics retailer. Zebit has made a pledge of employers representing 250,000 employees to deliver the advantage in 2016.
“Zebit is bringing a fully automated payment processing system, the first of its kind, to the market for underserved populations who are in dire need of this service,” said Jim Leaf, general partner at Crosslink Capital. “We are delighted to support Zebit as it enters the market and to continue to expand its platform to new employers.”
Zebit provides the credit, payment system and a robust e-commerce marketplace that will disrupt the $ 25 billion high cost offline installment finance industry. By combining payroll data with sophisticated risk analyzes, Zebit grants credits and collects installments through automated deductions that match each consumer’s pay date. This new technology enables the 68 million underserved Americans to reap the benefits of Internet commerce while opening a new market for merchants.
“Retailers want access to these new leads who now have credit available,” said Marc Schneider, co-founder and COO, Zebit. “At Zebit, we are creating the first truly automated payment platform that connects these two groups in a cost-effective manner, addressing a distinct market need.”
Zebit’s underlying technology was developed based on the experience of the co-founders in the payments, risk and e-commerce markets, focused on traditionally underserved populations. Before founding Zebit, Michael thiemann was CEO of Global Analytics, which pioneered and tested the underlying technology of Zebit. He has also served as Chairman and CEO of Investment Science, HNC Financial Solutions, and Aptex, all of which have delivered breakthrough big data products for online loan creation, real-time fraud prevention and analysis of Internet transactions. Thiemann led the team that developed Falcon (now FICO Falcon), a payment systems fraud solution that protects more than two billion accounts worldwide.
Co-founder and COO Marc Schneider brings to Zebit a wealth of experience in developing financial products for the underserved population, combined with expertise in e-commerce. He was Senior Vice President, Operations, for Global Analytics, Inc. from 2010 to 2015. He was also COO of Zulily, a private online shopping site, where he built and released. scale customer service, logistics and fulfillment, studio operations. and IT to support the accelerated growth of the company. Prior to Zulily, Marc was Vice President, M&A Integration and Customer Service at Fournir Commerce.
“Zebit’s management team brings a unique combination of talents in the areas of financial technology, big data analytics, payments systems and e-commerce,” said Bryan stolle, general partner at Wildcat Venture Partners and Mohr Davidow Ventures. “The Zebit team designed and delivered a financially attractive product for underserved demographics; they achieved an industry first.”
Along with their investment, Jim Leaf, general partner, Crosslink Capital; Bryan stolle, general partner, Wildcat Venture Partners and Mohr Davidow Ventures; and Pete sinclair, general partner, Leapfrog Ventures all join Zebit’s board of directors.
Co-founders Michael thiemann and Marc Schneider speak as part of the Money 20/20 Launchpad 360°” Today at 3:48 p.m. PDT. Zebit exhibits at Money 20/20 at booth LPK6.
Zebit’s payment system technology opens up online shopping for 68 million Americans by providing free credit to the underserved population. Due to cash flow constraints or lack of access to credit, these consumers typically turn to high-cost offline financing methods (payday loans, hire-purchase, store financing) with payments that can total more than four times the purchase value. Zebit’s platform is the first to provide real-time, no-fee, no credit check, zero annual rate financing to underserved people, and is available to any online merchant as a primary payment method. Learn more about Zebit on www.zebit.com.
About Money20 / 20
Money20 / 20 is the world’s largest event enabling innovation in payments and financial services for connected commerce at the intersection of mobile, retail, marketing services, data and technology. With over 10,000 attendees, including over 1,000 CEOs, from more than 3,000 companies and 75 countries, expected at its 2015 U.S. event, Money20 / 20 is essential to realizing the vision in disruptive ways that consumers and businesses manage. , spend and borrow money. Money20 / 20 is held in Las Vegas, 25-28 October 2015, followed by Money20 / 20 Europe in spring 2016.
[i] Federal Deposit Insurance Corp. (FDIC), 2011 FDIC National Survey of Unbanked and Underbanked Households, September 2012, http://www.fdic.gov/householdsurvey/2012_unbankedreport.pdf, p. 4 to 10.
[ii] Bankrate.com. 76% of Americans don’t have enough emergency savings. June 24, 2013. http://investor.bankrate.com/phoenix.zhtml?c=61502&p=irol-newsArticle&id=1832226
[iii] Federal Reserve Board of Governors. “Report on the economic well-being of American households in 2014”, http://www.federationreserve.gov/econresdata/2014-report-economic-well-being-us-households-201505.pdf. (Federal Reserve Board of Governors)
[iv] Garman, E. Thomas, Irene E. Leech, and John E. Grable. “The negative impact of bad personal financial behavior of employees on employers”. Financial advice and planning 7 (1996). http://u.osu.edu/hanna.1/files/2013/01/garman96.pdf
SOURCE Zebit, Inc.