Genoapay founder Shaun Quincey has attracted $1 million of funding from an accelerator programme co-funded by Callaghan Innovation but says he's intent on building his instalment payment platform into a $1 billion business.
Genoapay lets shoppers pay for goods or services of up to $1,500 in 10 weekly instalments using their debit or credit card and attracting no interest. Instead, it charges merchants a fee for being able to offer the instalment payment option. The platform is bankrolled by Finance Now, a finance company owned by Southland Building Society, and uses Debitsuccess to manage its payment systems and credit services. Finance Now has taken a 10 percent stake in Genoapay.
The company's board includes former Paymark chief executive Mark Rushworth and has an advisory board that includes a former head of engineering at Linked In and a former executive at Amazon Payments.
Genoapay is already offering its service in conjunction with an auto-parts business and a dental company, although Quincey declined to name them, saying he wanted to get as far ahead of potential rivals copying the idea as he can. Quincey said surveys had shown consumers were happier to purchase on instalments than load up their credit card or take out a loan.
"Most merchants like it - it's very low friction and much faster than having to sit down and apply for a credit card or personal loan," he said.
Debitsuccess is part of Transaction Services Group which began in 1994 offering payment services to the fitness industry. According to its website, it handles more than 22 million transactions a year with a value of more than $1 billion. Quincey says Debitsuccess provides his company with "scalability" so that it can work with large-scale merchants. While the terms to consumers are interest-free they would be charged a $10 default fee if payments aren't met and ultimately a defaulter would be referred to debt collection if amended payment couldn't be agreed.
Quincey raised the $1 million after pitching his product to investors at a demo day after the six-month Flux Accelerator Programme co-funded by The Icehouse and Callaghan.
"It's no surprise Genoapay attracted the support they did," said Robbie Paul, Icehouse's head of startup. "They have many of the features that our investors and our funds are looking for in startups: they're targeting a market that needs disrupting and they've attracted support and interest from key users and supporters in the ecosystem."
(BusinessDesk receives assistance from Callaghan Innovation to cover the commercialisation of innovation)
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