Scalapay, a Buy Now, Pay Later (BNPL) technology provider based in Italy, announced a $27 million extension of its Series B funding round. The additional investment, which builds on the company’s massive $497 million original Series B raise, came from Italian payment card issuer Poste Italiane.
BNPL, an online payment method enabling consumers to pay for e-commerce purchases, has experienced enormous growth in the past several years. Both merchants and consumers see significant value in the alternative payment method.
Scalapay said in its announcement it will leverage the cash to hire additional staff, continue to build features into the product and engage with consumers to build the company’s brand. Scalapay offers three options for consumers to pay for e-commerce purchases: pay in three installments, pay in four installments or pay entirely after 14 days.
While the popularity of BNPL is high and merchants are rushing to offer it as a payment option, bad actors are expected to leverage its unfamiliarity to find opportunities for fraud. A recent report from Experian predicts companies like Scalapay and the merchants offering it will be exposed to significant increases in fraud attacks.