Payment is definitely the new holy grail of e-commerce. It must be said that consumer demand for installment payment formulas (buy now, pay later) is growing strongly. At the One to One fair in Monaco, many Fintech service providers offer their solutions and seek to make the most of the game.
Younited is one of those without being one of those. Explanations with Geoffroy Guigou, co-founder of Younited.
Let’s start with a little presentation. The fintech startup born in 2012 is part of Next40. It has 500 employees and aims to transform the world of credit and payment. A credit institution, it offers financial services for individuals and payment solutions for companies. Offline is responsible for 70% of spread payments.
Since its launch, Younited has raised more than €323 million and provided more than €2.6 billion in credit.
It offers three main product lines:
– Younited Crédit, its consumer credit offer from 1,000 to 50,000 euros launched in 2012
– Younited Pay, integrated shopping solution with instant response
– Younited Coach: a bank account analysis service to provide financial advice
A plug and play solution integrated into the buying journey
It is Younited Pay that Geoffroy Guigou, the founder of Younited, came to present in Monaco.
The co-founder starts from the premise that the checkout experience is one of the sensitive points of the purchase journey, and that it should be treated very carefully. He talks about the “5Ps”, adding Pay to the famous 4Ps.
Today, consumers are no longer satisfied with offers to pay in 3 or 4 installments at no cost. He wants to spread his expenses over a long period of time. This is the challenge that the Younited Pay product wanted to meet. This offer was created in 2018 for major players, but has just gone through two years of development to become accessible to all e-commerces and maintain new consumption practices.
Younited’s BNPL (Installment Payment) offers span a period of 1 to 84 months, which is quite unprecedented for an e-commerce credit offer and especially with a response within seconds.
How is this possible? Consumers who subscribe to a Younited Pay formula online will securely connect to their bank, and the tools developed by Younited will scan and analyze spending to deduct a risk factor.
The tool is plug-and-play and easily connects to all types of CMS via plugins and APIs.
In terms of pricing, Younited Pay announces that it has a very aggressive offer on short term credits (3-4 times) where competition is fierce. Notably because in the long-term credit history business, operators’ margins remain comfortable.
The way to buy with financing: an undeniable effect Wow
But that is not all. With some big names in the industry, Younited teams have gone much further in integrating payment into the purchase process. In fact, the tool offers the addition of options such as device exchange or term exchange (rent), which allows the face price to be reduced in an almost magical way for the consumer.
The example impresses with the tool set up by Apple brand resellers for their phones. The latest smartphone over 1200 euros costs 36 euros per month in a few clicks!
The implementation of this type of tool (also called “trade-in”) has been remarkably successful both among manufacturers of electronics or luxury products (whose value is slowly decreasing in value) and among retailers. The possibility for the customer to bring the good back to the merchant is very interesting, as he will see his customer again after X months of consuming the product, and will be able to offer him new offers. If the process was done online, the customer will receive a notification to ask if they still want to return their product. If so, they will receive return instructions and documents.
What sets Younited apart from its competitors?
- The startup offers aodularity of amounts from 100 to 50,000 euros and loan terms of up to 84 months, while the overwhelming majority of players offer e-merchant solutions with terms of less than 90 days. The heart of the BNPL market ranges from zero to 48 months. Younited is able to offer long and high value offers thanks to its accreditation as a credit institution and its 10 years experience in offering installment payments. This depth of offer makes it a player in its own right.
” Our model is unique. You or I are almost able to assess whether this or that person around us is solvent over a period of 3 to 4 months. Our score, which is primarily based on the DSP2 standard, is able to predict how likely a person is to default in 71 months! It’s particularly complex, very few actors are able to do it.“, specifies Geoffroy Guigou.
- The option to offer an installment payment solution based on a credit agreement is unique. Based on European regulations, this practice consists of treating each BNPL application as a credit, even for small amounts. This practice is more protective for the consumer, but costs more in processing, as, for example, the FICP is questioned.
- Finally, Younited offers European coverage with a presence in Italy, Spain, Portugal and Germany, representing 265 million people, 60% of the European population and 40% of the startup’s activity. This international positioning is of interest to major players with clients such as Mano Mano, Backmarket or even Veepee, whose share of international sales is already significant.
Younited Coach, the financial service that loves you
When subscribing to credit, Younited usually asks the customer to share their bank account history in an automated way. This is what the Younited Coach service is based on, which will produce recommendations based on your account screening for certain clients. Ultimately, Geoffroy Guigou would like these recommendations to lead a certain number of people not to apply for credit!
Surprising as it may seem to a credit institution, the Younited Coach today can tell you something like “You need 1000 euros: if you set aside 100 euros a month doing this or that action, you can get there without resorting to credit. »
Younited’s aspiration with this service is to offer a form of financial education in a country that has deficiencies in this area, to bring people to a certain financial serenity. The company wants to have a real social impact by giving this personalized advice.
Younitized Coach is free. The company finances the development of this service via affiliation when it advises, for example, a person to join an online bank to save on banking expenses that the tool would consider too high. The service is not intended to bring in money and Geoffroy Guigou insists on the social dimension of Younited Coach.
In general, the startup has the ambition to develop ethically. It has chosen to make only repayable credit, while the “dairy cow” of the sector is revolving credit, it treats in credit and in accordance with European regulations any request for payment in installments, and Younited Coach will continue to be a free service.
There are companies that do not act like the others, that have very different values from the others. Younited is one of them.
Is it simply a financial company of its time?